<SUBMISSION>
<ACCESSION-NUMBER>0000950144-04-002203
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20040310
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BOWATER INC
<CIK>0000743368
<ASSIGNED-SIC>2621
<IRS-NUMBER>620721803
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-108168
<FILM-NUMBER>04658750
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>55 EAST CAMPERDOWN WAY
<STREET2>P O BOX 1028
<CITY>GREENVILLE
<STATE>SC
<ZIP>29601
<PHONE>8642717733
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>55 EAST CAMPERDOWN WAY
<STREET2>P O BOX 1028
<CITY>GREENVILLE
<STATE>SC
<ZIP>29602
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>g87692e424b5.htm
<DESCRIPTION>BOWATER INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>Bowater Incorporated</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="CENTER" style="font-size: 10pt">SUBJECT TO COMPLETION,
DATED MARCH&nbsp;10, 2004

<P align="right" style="font-size: 10pt">Filed Pursuant to
Rule&nbsp;424(b)(5)<br>
Registration No.&nbsp;333-108166


<P align="left" style="font-size: 10pt">The information contained in this preliminary prospectus supplement is not
complete and may be changed. Neither this preliminary prospectus supplement nor
the accompanying prospectus is an offer to sell nor does either seek an offer
to buy these securities in any jurisdiction where the offer or sale is not
permitted.



<P align="left" style="font-size: 10pt"><B>PROSPECTUS SUPPLEMENT<br></B>
(To Prospectus dated September&nbsp;17, 2003)<B><br></B>



<P align="left" style="font-size: 10pt"><B>$250,000,000</B>



<P align="left" style="font-size: 10pt"><IMG src="g87692g8769205.gif" alt="(BOWATER LOGO)">



<P align="left" style="font-size: 10pt"><B>BOWATER INCORPORATED<br>
Floating Rate Senior Notes due 2010</B>



<P align="left" style="font-size: 10pt"><B>Company</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are engaged in the manufacture, sale and distribution of newsprint, uncoated specialty paper, coated
groundwood paper, market pulp, lumber and timber.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>The Notes</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are offering $250,000,000 aggregate principal amount of our Floating Rate Senior Notes due 2010, which we
refer to as the &#147;notes.&#148;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The per annum interest rate on the notes will be reset quarterly based on three-month LIBOR plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will pay interest on the notes quarterly in arrears on each March&nbsp;15, June&nbsp;15, September&nbsp;15 and December
15, starting on June&nbsp;15, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The notes will mature on March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2010.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will use the net proceeds of this offering to repay a portion of our existing debt.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Redemption and Repurchase</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006, we may redeem all or a portion of the notes at any time. The redemption price will be
102% of the principal amount if redeemed from March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006 to March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2007; 101% if redeemed from March
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2007 to March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2008; and 100% if redeemed after March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2008.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Ranking</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The notes will be our unsecured obligations.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The notes will rank equally with all of our existing and future senior unsecured debt.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The notes will rank senior to any of our debt that may be expressly subordinated to the notes but will be
effectively subordinated to all of our senior secured indebtedness to the extent of the assets securing that
indebtedness and to all the obligations and liabilities of our subsidiaries to the extent of their assets.</TD>
</TR>

</TABLE>

<P align="CENTER" style="font-size: 10pt"><B>Investing in the notes involves risks. See &#147;Risk Factors&#148; beginning on page S-4.</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Per Note</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Initial public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Underwriting discount from initial public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Proceeds to Bowater before expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">The initial public offering price set forth above does not include accrued
interest, if any. Interest on the notes will accrue from the date of original
issuance of the notes, which is expected to be March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004.


<P align="left" style="font-size: 10pt"><B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of the notes or passed upon the accuracy
or adequacy of this prospectus supplement or the accompanying prospectus. Any
representation to the contrary is a criminal offense.</B>


<P align="left" style="font-size: 10pt">The underwriters expect to deliver the notes on or about March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004.
The notes will be delivered only through the book-entry facilities of The
Depository Trust Company.



<P align="center" style="font-size: 10pt"><B><I>Joint Book-Running Managers</I></B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>UBS Investment Bank</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>JPMorgan</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><B>_______________________</B>
<P>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%"></TD>
    <TD width="5%"></TD>
    <TD width="21%"></TD>
    <TD width="5%"></TD>
    <TD width="21%"></TD>
    <TD width="5%"></TD>
    <TD width="21%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>Scotia Capital</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Harris Nesbitt</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Wachovia Securities</B>
</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP align="right" valign="top"><B>SunTrust Robinson Humphrey</B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="17%"></TD>
    <TD width="3%"></TD>
    <TD width="17%"></TD>
    <TD width="3%"></TD>
    <TD width="17%"></TD>
    <TD width="3%"></TD>
    <TD width="17%"></TD>
    <TD width="3%"></TD>
    <TD width="17%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD NOWRAP align="left" valign="top"><B>Banc of America Securities LLC</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TD Securities</B>
</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP align="center" valign="top"><B>BNY Capital Markets, Inc.</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>CIBC</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Barclays Capital</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">The date of this prospectus supplement is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004.

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>You should rely only on the information contained in or incorporated by
reference in this prospectus supplement and the accompanying prospectus. We
have not authorized anyone to provide you with different information. We are
not making an offer of these securities in any state where the offer is not
permitted. You should not assume that the information contained in this
prospectus supplement or the accompanying prospectus is accurate as of any date
other than the date on the front of this prospectus supplement.</B>



<P align="center" style="font-size: 10pt"><B>_______________________</B>



<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="center"><B>Prospectus Supplement<BR></B></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Forward-Looking Statements </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-i</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Prospectus Supplement Summary </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Risk Factors </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Use of Proceeds </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Selected Financial Data </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Notes </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Underwriting </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Legal Matters </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" align="center"><B>Prospectus<BR></B></TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Forward-Looking Statements </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">About this Prospectus </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Where You Can Find More Information </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Important Notice to Readers </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Bowater Incorporated </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">The Trusts </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Use of Proceeds </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Ratio of Earnings to Fixed Charges and Preference Dividends to Earnings </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">General Description of the Offered Securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Capital Stock </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Depositary Shares </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Warrants </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Stock Purchase Contracts and Stock Purchase Units </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Debt Securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Trust Preferred Securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Description of Trust Preferred Securities Guarantees </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Plan of Distribution </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Legal Matters </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Experts </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt"><B>Forward-Looking Statements</B>


<P align="left" style="font-size: 10pt">Statements that are not reported financial results or other historical
information are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. This prospectus supplement, each of
Bowater Incorporated&#146;s annual reports to shareholders, Forms 10-K, 10-Q and
8-K, proxy statements, prospectuses, prospectus supplements and any other
written or oral statement made by us or on our behalf previously or in the
future may include forward-looking statements including, for example,
statements about our business outlook, assessment of market conditions,
strategies, future plans, future sales, liquidity, prices for our major
products, inventory levels, capital spending and tax and exchange rates. These
forward-looking statements are not guarantees of future performance. These
statements are based on management&#146;s expectations that involve a number of
business risks and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the forward-looking
statements. In addition to specific factors described in connection with any
particular forward-looking statement, factors that could cause actual results
to differ materially include, but are not limited to, those in the section
entitled &#147;Risks Related to Our Business&#148; of Bowater Incorporated&#146;s Annual
Report on Form 10-K for the year ended December&nbsp;31, 2003, and any other report,
proxy statement, prospectus or prospectus supplement Bowater Incorporated
subsequently files with the Securities and Exchange Commission incorporated by
reference into this prospectus supplement and the section entitled &#147;Risks
Related to the Notes and Our Structure.&#148; In addition, other risks could
adversely affect us, as it is not possible for us to predict or assess all
risks. We disclaim any obligation to publicly update or revise any
forward-looking statements even if our situation changes in the future.



<P align="center" style="font-size: 10pt">S-i
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Prospectus Supplement Summary</B>


<P align="left" style="font-size: 10pt"><I>This is only a summary of the offering. It likely does not contain all the
information that is important to you. To fully understand an investment in the
notes, you must consider this prospectus supplement, the accompanying
prospectus and the detailed information incorporated into them by reference,
including the financial statements and their accompanying notes.</I>


<P align="left" style="font-size: 10pt"><B>In this prospectus supplement, unless the context requires otherwise,
&#147;Bowater,&#148; &#147;we,&#148; &#147;our&#148; and &#147;us&#148; refer to Bowater Incorporated and not its
subsidiaries. However, in the discussions under the following headings, these
terms refer to Bowater Incorporated with its consolidated subsidiaries, unless
the context requires otherwise: &#147;Forward-Looking Statements;&#148; &#147;Prospectus
Supplement Summary &#150; Bowater Incorporated;&#148; and &#147;Prospectus Supplement Summary
&#150; Ratio of Earnings to Fixed Charges.&#148;</B>



<P align="left" style="font-size: 10pt"><B>Bowater Incorporated</B>


<P align="left" style="font-size: 10pt">We are engaged in the manufacture, sale and distribution of newsprint, uncoated
specialty paper, coated groundwood paper, market pulp, lumber and timber. We
operate facilities in the United States, Canada and South Korea, and our
operations are supported by approximately 1.4&nbsp;million acres of timberlands
owned or leased in the United States and Canada and approximately 31.8&nbsp;million
acres of timber cutting rights on Crown-owned land in Canada. We market and
distribute our products throughout the world. No single customer, related or
otherwise, accounted for 10% or more of our 2003 consolidated sales.


<P align="left" style="font-size: 10pt">We completed our acquisition of Alliance Forest Products Inc. (&#147;Alliance&#148;) on
September&nbsp;24, 2001. The results of Alliance&#146;s operations have been included in
our consolidated financial statements since then. Before the acquisition,
Alliance was an integrated company specializing in timber harvesting and forest
management, as well as the production and sale of newsprint, uncoated specialty
paper, pulp, lumber and related products. Alliance had operations in Canada and
the United States. The acquisition added supercalendered and specialty paper
production at Donnacona and Dolbeau, Qu&#233;bec, enabling Bowater to offer a fuller
spectrum of groundwood paper grades. Also, a strategically located Alliance
mill in Coosa Pines, Alabama, which produces market fluff pulp and newsprint
and was modernized in the first quarter of 2002 to produce 100% recycled fiber
newsprint, enhances Bowater&#146;s customer service capabilities. Alliance&#146;s
extensive sawmill system and approximately 18&nbsp;million acres of cutting rights
support Bowater&#146;s expanded operations.


<P align="left" style="font-size: 10pt">Bowater was incorporated in Delaware in 1964. Our principal executive offices
are located at 55 East Camperdown Way, Greenville, South Carolina 29601, and
our telephone number at that address is (864)&nbsp;271-7733. Our mailing address is
Post Office Box 1028, Greenville, South Carolina 29602-1028.



<P align="center" style="font-size: 10pt">S-1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>The Offering</B>


<P align="left" style="font-size: 10pt"><I>The following summary is not intended to be complete. For a more detailed
description of the notes, see &#147;Description of Notes.&#148;</I>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bowater Incorporated</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Securities Offered
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$250,000,000 aggregate principal amount of
Floating Rate Senior Notes due 2010.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maturity Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes mature on March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2010.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Redemption by us
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006, we may redeem all or a
portion of the notes at any time. The
redemption price will be equal to:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">- 102% of the principal amount if redeemed from
March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006 to March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2007;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">- 101% of the principal amount if redeemed from
March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2007, to March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2008; and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">- 100% of the principal amount if redeemed
after March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2008.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest Rate and Payment
Dates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes will accrue interest from the date of
their issuance at a rate per year, reset
quarterly, equal to three-month LIBOR plus
%. Interest on the notes will be payable
quarterly in arrears on each March&nbsp;15, June&nbsp;15,
September&nbsp;15 and December&nbsp;15, commencing on
June&nbsp;15, 2004.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ranking
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes will be our unsecured obligations.
The notes will rank equally with all of our
existing and future senior unsecured debt.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes will rank senior to any of our debt
that may be expressly subordinated to the
notes, but will be effectively subordinated to
any secured indebtedness to the extent of the
assets securing that indebtedness and to all
obligations and liabilities of our subsidiaries
to the extent of their assets. At December&nbsp;31,
2003, assuming this offering and our use of net
proceeds had occurred on that date, Bowater
Incorporated would have had no secured
indebtedness on an unconsolidated basis, and
our consolidated subsidiaries would have had
indebtedness to third parties of approximately
$1,109&nbsp;million, of which approximately $54
million would have been secured and
approximately $598&nbsp;million would have been
guaranteed by Bowater Incorporated. In
addition, our operating subsidiaries have
significant current and long-term liabilities.
As of December&nbsp;31, 2003, assuming this offering
and our use of net proceeds had occurred on
that date, Bowater Incorporated on an
unconsolidated basis would have had
approximately $1,402&nbsp;million of unsecured
indebtedness and approximately $454&nbsp;million of
additional unsecured indebtedness available to
be borrowed under its credit facilities.</TD>
</TR>

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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">S-2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restrictive Covenants
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The indenture (including the supplemental
indenture) governing the notes restricts our
ability to create certain liens, enter into
sale and lease-back transactions and merge or
consolidate.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Absence of a Public Market
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes are a new issue of securities, and
there is currently no established market for
them. There can be no assurance as to the
development or liquidity of any market for the
notes. The underwriters have advised us that
they currently intend to make a market for the
notes as permitted by applicable laws and
regulations. However, they are not obligated to
do so and may discontinue any such market
making activities at any time in their sole
discretion without notice.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of Net Proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will use the net proceeds of this offering
to repay a portion of our existing debt.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Risk Factors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Risk Factors&#148; beginning on page S-4 and
the information incorporated by reference into
that section for a discussion of factors you
should carefully consider before deciding to
invest in the notes.</TD>
</TR>

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</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><B>Ratio of Earnings to Fixed Charges</B>


<P align="left" style="font-size: 10pt">Our ratio of earnings to fixed charges for each of the periods indicated is as
follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="57%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>Fiscal Year Ended December 31,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Ratio of Earnings to Fixed Charges*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0x</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">The ratio of earnings to fixed charges is computed by dividing earnings
by fixed charges. Earnings consist of income before income taxes and
minority interests plus interest expense (excluding interest capitalized
during the period and amortization of previously capitalized interest)
plus the portion of rental expenses representative of the interest factor.
Fixed charges consist of total interest expense (including interest
capitalized during the period) plus the portion of rental expense
representative of the interest factor plus amortized premium and discount
related to indebtedness.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">&#134;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">In fiscal years 2003 and 2002, fixed charges exceeded earnings by $288.3
and $259.5&nbsp;million, respectively.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">S-3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="left" style="font-size: 10pt"><B>Risk Factors</B>



<P align="left" style="font-size: 10pt"><B>Risks Relating to Our Business</B>


<P align="left" style="font-size: 10pt">Risk factors relating to our business are contained in the section entitled
&#147;Risks Related to Our Business&#148; of Bowater Incorporated&#146;s Annual Report on Form
10-K for the year ended December&nbsp;31, 2003.



<P align="left" style="font-size: 10pt"><B>Risks Related to the Notes and Our Structure</B>


<P align="left" style="font-size: 10pt"><B>The majority of our assets are held, and the majority of our operations are
conducted, by subsidiaries. Bowater Incorporated depends heavily upon
distributions and payments from its subsidiaries.</B>


<P align="left" style="font-size: 10pt">Bowater Incorporated will depend heavily on payments on intercompany loans by
its subsidiaries or other distributions or payments to it to make payments on
the notes. These subsidiaries are separate legal entities that have no
obligation to pay any amounts due pursuant to the notes. Consequently, Bowater
Incorporated cannot assure you that the amounts it receives from its
subsidiaries will be sufficient to enable it to service its obligations on the
notes.



<P align="left" style="font-size: 10pt"><B>The notes are effectively subordinated to all liabilities of our subsidiaries and to our secured debt.</B>


<P align="left" style="font-size: 10pt">The majority of our assets are held, and the majority of our operations are
conducted, by subsidiaries. None of our subsidiaries will guarantee our
obligations under, or have any obligation to pay any amounts due on, the notes.
As a result, the notes will be effectively subordinated to all liabilities of
our subsidiaries and all mandatorily redeemable preferred stock of our
subsidiaries to the extent of their assets. Our rights and the rights of our
creditors, including holders of the notes, to participate in the assets of any
of our subsidiaries upon their liquidation or recapitalization will generally
be subject to the prior claims of those subsidiaries&#146; creditors. There are no
limitations in the indenture (including the supplemental indenture) pertaining
to the notes on the amount of indebtedness, secured or otherwise, that may be
incurred or preferred stock that may be issued by any of our subsidiaries other
than the limitations described in the subsection of this prospectus supplement
entitled &#147;Description of Notes &#150; Restrictive Covenants &#150; Limitation on Liens.&#148;


<P align="left" style="font-size: 10pt">As of December&nbsp;31, 2003, assuming this offering and our use of net proceeds had
occurred on that date, our consolidated subsidiaries would have had
indebtedness to third parties of approximately $1,109&nbsp;million, of which
approximately $54&nbsp;million would have been secured and approximately $598
million would have been guaranteed by Bowater Incorporated. In addition, our
operating subsidiaries have significant current and long-term liabilities. In
addition, the notes are not secured by any of our assets or those of our
subsidiaries. As a result, the notes will be effectively subordinated to any
secured debt we may incur as well as our outstanding secured debt. In any
liquidation, dissolution, bankruptcy or other similar proceeding, holders of
our secured debt may assert rights against any assets securing such debt in
order to receive full payment of their debt before those assets may be used to
pay the holders of the notes. At December&nbsp;31, 2003, assuming this offering and
our use of net proceeds had occurred on that date, we would have had secured
indebtedness on a consolidated basis of approximately $54&nbsp;million.



<P align="left" style="font-size: 10pt"><B>The notes do not restrict our ability to incur additional debt or to take other actions that could negatively impact holders of the notes.</B>


<P align="left" style="font-size: 10pt">The terms of the notes permit us to incur additional indebtedness, including,
subject to some limitations, secured debt. See the subsection of this
prospectus supplement entitled &#147;Description of Notes &#150; Restrictive Covenants &#150;
Limitation on Liens.&#148; In addition, the limited covenants applicable to the
notes do not require us to achieve or maintain any minimum financial results
relating to our financial position or results of operations. Our ability to
recapitalize, pay dividends, incur additional debt, and take a number of other
actions that are not limited by the terms of the notes could have the effect of
diminishing our ability to make payments on the notes when due. In addition, we
are not restricted from repurchasing subordinated indebtedness or common stock
by the terms of the notes.



<P align="center" style="font-size: 10pt">S-4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>The notes may receive a lower rating than anticipated, or any Bowater rating
may be reduced or terminated. Bowater is currently rated as non-investment
grade by S&#038;P and Moody&#146;s.</B>


<P align="left" style="font-size: 10pt">If one or more rating agencies assigns the notes a rating lower than the rating
expected by investors, reduces their rating or any Bowater rating in the future
or terminates any Bowater rating, the market price of the notes would be
harmed.


<P align="left" style="font-size: 10pt">Bowater&#146;s credit rating with S&#038;P is BB with a stable outlook and with Moody&#146;s
is Ba2 with a negative outlook. There is no way to predict with certainty any
future rating actions by these two agencies. The interest rates associated with
our bank lines of credit are based on Bowater&#146;s highest credit rating. Any
reduction in the highest rating will increase our cost of borrowing. In
addition to higher interest rates, although further downgrades would have no
material impact on availability under our present debt and credit agreements,
it could impact our access to and cost of capital and financial flexibility in
the future.



<P align="left" style="font-size: 10pt"><B>We will have broad discretion to allocate the net proceeds of this offering.</B>


<P align="left" style="font-size: 10pt">We intend to use the net proceeds from this offering to repay a portion of our
existing debt. Because the notes and our other credit arrangements impose few
restrictions on our ability to allocate funds, to the extent that we use the
net proceeds of the notes to repay debt that we subsequently reborrow or
replace, we will have broad discretion as to our use of those subsequent
proceeds. We are not currently able to estimate the allocation of any
borrowings among potential uses, and the timing and amount of expenditures will
vary depending upon numerous factors.


<P align="left" style="font-size: 10pt"><B>Our substantial indebtedness could adversely affect our financial health and
prevent us from fulfilling our obligations under the notes.</B>


<P align="left" style="font-size: 10pt">We have a significant amount of indebtedness. As of December&nbsp;31, 2003, after
giving effect to the offering of the notes and our use of net proceeds, we,
together with our consolidated subsidiaries, would have had outstanding total
debt of $2,510.8&nbsp;million, a deficit of earnings to fixed charges of $288.3
million and shareholders&#146; equity of $1,612.7&nbsp;million. Our substantial amount of
debt could have important consequences for you. For example, it could:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to satisfy our obligations with respect to the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to obtain additional financing, if needed, for working capital, capital expenditures, acquisitions, debt
service requirements or other purposes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase our vulnerability to adverse economic and industry conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require us to dedicate a substantial portion of our cash flow from operations to make payments on our debt, thereby
reducing funds available for operations, future business opportunities or other purposes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our flexibility in planning for, or reacting to, changes in our business and our industry; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>place us at a competitive disadvantage compared to our competitors that have less debt.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Our credit facilities and the credit facilities of one of our subsidiaries
contain various covenants, including requirements to maintain adequate net
worth and compliance with a specified ratio of total debt to total capital, in
each case on a consolidated basis and as defined in the credit facilities. In
February&nbsp;2004, effective beginning January&nbsp;1, 2004, we obtained an amendment,
through April&nbsp;1, 2005, to covenants contained in our U.S. and Canadian credit
agreements whereby the minimum net worth requirement (generally defined in the
credit agreements as common shareholders&#146; equity plus any outstanding preferred
stock plus minimum pension liability amounts) was reduced from $1.625&nbsp;billion
(in effect at December&nbsp;31, 2003) to $1.525&nbsp;billion and the total debt
(generally defined in the agreements as total debt less revaluation of debt
assumed through acquisitions) to total capital requirement (generally defined
in the agreements as total debt less revaluation of debt assumed through
acquisitions, plus net worth including minority interest, plus minimum pension
liability amounts) was increased from 60% (in effect at December&nbsp;31, 2003) to
61%. Also, when Bowater generates net income, the minimum net worth
requirement increases by half of Bowater&#146;s consolidated net income for each

<P align="center" style="font-size: 10pt">S-5
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">fiscal quarter (without giving effect to consolidated net losses). After April
1, 2005, the minimum consolidated net worth requirement increases to $1.620
billion, plus 50% of consolidated net income for each fiscal quarter since the
first quarter of 2002 (without giving effect to consolidated net losses) and
the total debt to total capitalization ratio decreases to 60%. At December&nbsp;31,
2003, our consolidated net worth was approximately $1.770&nbsp;billion, and our
ratio of total debt to total capital was 56.8%, calculated according to our
credit facilities&#146; guidelines. The amendments are intended to ensure continued
covenant compliance and will also increase Bowater&#146;s short-term liquidity by
increasing its borrowing base under the credit agreements. Our continued
compliance is dependent on a number of factors, many of which are outside of
our control. Should events occur that would result in noncompliance, we
believe that a number of acceptable options would be available to us including,
but not limited to, amending the credit facilities, obtaining a waiver or
pursuing additional or alternative financing arrangements, but we cannot assure
that these options would be available on attractive terms or at all.


<P align="left" style="font-size: 10pt"><B>There is no established trading market for the notes, and you may not be able
to sell them quickly or at the price you paid.</B>


<P align="left" style="font-size: 10pt">The notes are a new issue of securities, and there is no established trading
market for the notes. We do not intend to apply for the notes to be listed on
any securities exchange or to arrange for quotation on any automated dealer
quotation systems. The underwriters have advised us that they intend to make a
market in the notes, but they are not obligated to do so, and if any of them
chooses to make a market in the notes, they may discontinue any market making
in the notes at any time, in their sole discretion without notice. As a result,
we cannot assure you as to the liquidity of any trading market for the notes.


<P align="left" style="font-size: 10pt">We also cannot assure you that you will be able to sell your notes at a
particular time or that the prices that you receive when you sell will be
favorable. We also cannot assure you as to the level of liquidity of the
trading market for the notes. Future trading prices of the notes will depend on
many factors, including without limitation:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our operating performance, financial condition and prospects;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest of securities dealers in making a market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the market for similar securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of holders of the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the prospects for companies in our industry generally;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of potential buyers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any ratings published by major credit rating agencies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount of debt we have outstanding;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level, direction and volatility of market interest rates generally; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the time remaining to maturity of the notes.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Historically, the market for non-investment grade debt has been subject to
disruptions that have caused volatility in prices. The market for the notes may
be disrupted. Any disruptions may have a negative effect on noteholders,
regardless of our prospects and financial performance.



<P align="center" style="font-size: 10pt">S-6
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Use of Proceeds</B>


<P align="left" style="font-size: 10pt">We intend to use the net proceeds of this offering, which we expect to be
approximately $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(after all discounts, fees and expenses), for the
following purposes:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Repay all outstanding indebtedness under a $100&nbsp;million term credit facility of Bowater Incorporated;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Repay all outstanding indebtedness under a $500&nbsp;million revolving credit facility of Bowater Incorporated; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reduce outstanding amounts under our $200&nbsp;million accounts receivable securitization arrangement.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">The amounts outstanding under the Bowater Incorporated revolving credit
facility and the accounts receivable securitization arrangement fluctuate from
time to time. At December&nbsp;31, 2003, the outstanding principal amounts under the
Bowater Incorporated term credit facility, the Bowater Incorporated revolving
credit facility and the accounts receivable securitization arrangement were
approximately $100.0&nbsp;million, $38.4&nbsp;million and $161.2&nbsp;million, respectively.
The final repayment amounts under these facilities at payoff may be higher or
lower than these amounts. The facilities mature in April&nbsp;2005, April&nbsp;2005 and
December&nbsp;2004, respectively. The weighted average interest rates for these
facilities at December&nbsp;31, 2003 were 3.19%, 3.03% and 1.10%, respectively.
Following these repayments, we may borrow additional amounts under the Bowater
Incorporated revolving credit facility and the accounts receivable
securitization arrangement and apply those proceeds to general corporate
purposes. We currently estimate transaction fees and expenses to be
approximately $4.4&nbsp;million.



<P align="center" style="font-size: 10pt">S-7
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Selected Financial Data</B>


<P align="left" style="font-size: 10pt">The following table summarizes our selected historical consolidated financial
information for each of the last five years. The selected financial data under
the captions &#147;Income Statement Data,&#148; and &#147;Financial Position&#148; shown below have
been derived from our audited consolidated financial statements. This table
should be read in conjunction with our other financial information, including
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148; and the financial statements included in our 2003 Form 10-K
incorporated by reference into the registration statement of which this
prospectus supplement forms a part.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B><i>(In millions, except</i></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B><i>per-share, employee and</i></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B><i>shareholder amounts)</i></B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001<sup>(1)</sup></B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000<sup>(1)</sup></B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999<sup>(1)</sup></B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Income Statement Data</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,721.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,581.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,454.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,311.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Operating
income (loss)<sup>(2)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(100.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(95.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(205.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(142.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Diluted earnings (loss)&nbsp;per
common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3.60</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.50</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Dividends declared per common
share<sup>(3)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Product Sales Information</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Newsprint<sup>(4)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,236.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,199.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,438.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,421.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,282.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Coated and specialty papers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">726.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">613.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">479.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Directory paper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Market pulp</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">489.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">498.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Lumber and other wood products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,721.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,581.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,454.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,311.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Financial Position</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Timber and timberlands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">184.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">212.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">243.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">265.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">283.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Fixed assets, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,557.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,645.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,802.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,981.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,581.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,615.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,599.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,761.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,004.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,552.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Long-term debt, including
current installments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,305.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,121.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,901.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,446.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,490.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,506.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,370.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,242.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,931.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,505.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Additional Information</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Return on average common equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12.2</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7.5</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Effective tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">24.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">29.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">45.9</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash flow from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">41.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">372.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">416.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">147.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash
invested in fixed assets, timber and timberlands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">238.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">246.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">283.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">198.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Book value per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">28.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">30.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">35.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">33.10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock price range</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Low</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">31.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">40.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">41.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36.94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">High</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">55.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">58.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">60.56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Shareholders
of record<sup>(5)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,200</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Employees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">In 2001, we acquired Alliance Forest Products Inc. In 2000, we acquired
Newsprint South, Inc. In 1999, we sold Great Northern Paper, Inc.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Operating income (loss)&nbsp;includes pretax net gain on sale of assets of
$124.0&nbsp;million, $85.7&nbsp;million, $163.3&nbsp;million, $7.3&nbsp;million and $225.4
million for the years 2003, 2002, 2001, 2000 and 1999, respectively.
Operating income (loss)&nbsp;for 2002 and 1999 also includes a pretax
impairment charge of $28.5&nbsp;million and $92.0&nbsp;million, respectively.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Dividends are declared quarterly.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Newsprint sales do not include shipments from Ponderay Newsprint Company,
an unconsolidated entity.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This includes holders of Bowater Common Stock and Exchangeable Shares
issued by Bowater Canada Inc.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">S-8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="left" style="font-size: 10pt"><B>Description of Notes</B>



<P align="left" style="font-size: 10pt"><B>General</B>


<P align="left" style="font-size: 10pt">The following description of the particular terms of the notes supplements and,
to the extent inconsistent, supersedes the description of the general terms and
provisions of the debt securities, including the notes, set forth in the
accompanying prospectus under the heading &#147;Description of Debt Securities.&#148;
<B>When we refer to &#147;Bowater,&#148; &#147;we,&#148; &#147;our&#148; or &#147;us,&#148; in this section, we refer only
to Bowater Incorporated, a Delaware corporation, and not to its subsidiaries.</B>


<P align="left" style="font-size: 10pt">The notes will be issued as part of a separate series of senior debt securities
under a Senior Indenture, dated as of March&nbsp;&nbsp;, 2004, as amended by a First
Supplemental Indenture, dated as of March&nbsp;&nbsp;, 2004 (as so supplemented, the
&#147;indenture&#148;), between Bowater Incorporated and The Bank of New York, who will
act as trustee for the notes (the &#147;trustee&#148;).


<P align="left" style="font-size: 10pt">A copy of the indenture will be filed as an exhibit to the registration
statement of which this prospectus supplement and the accompanying prospectus
are a part. Holders of the notes are bound by, and are deemed to have notice
of, the provisions of the indenture setting forth particular terms and
conditions of the notes. Copies of the indenture will be available for
inspection during usual business hours at the principal office of the trustee.
Capitalized terms used but not defined in this prospectus supplement have the
meanings given to them in the indenture or the notes, as the case may be.



<P align="left" style="font-size: 10pt"><B>Principal, Maturity and Interest</B>


<P align="left" style="font-size: 10pt">The notes will be part of a separate series of debt securities issued under the
indenture, limited to $250,000,000 aggregate principal amount. The notes will
mature on March&nbsp;&nbsp;&nbsp;&nbsp;, 2010 unless earlier redeemed by us.


<P align="left" style="font-size: 10pt">We will maintain an office in New York, New York, for the payment of interest,
which shall initially be an office or agency of the trustee.


<P align="left" style="font-size: 10pt">The notes will bear interest at a rate per annum, reset quarterly, equal to
three-month LIBOR plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%, as determined by the calculation agent, which
shall initially be the trustee. Interest on the notes will be payable
quarterly in arrears on each March&nbsp;15, June&nbsp;15, September&nbsp;15 and December&nbsp;15,
commencing on June&nbsp;15, 2004, to the holders of record on the immediately
preceding March&nbsp;1, June&nbsp;1, September 1 and December 1.


<P align="left" style="font-size: 10pt">Interest on the notes will accrue from the date of original issuance or, if
interest has already been paid, from the date it was most recently paid.


<P align="left" style="font-size: 10pt">Set forth below is a summary of certain of the defined terms used in the
indenture relating to the calculation of interest on the notes.


<P align="left" style="font-size: 10pt">&#147;<I>LIBOR,</I>&#148; with respect to an Interest Period, will be the rate (expressed as a
percentage per annum) for deposits in United States dollars for three-month
periods beginning on the first day of such Interest Period that appears on
Telerate Page 3750 as of 11:00&nbsp;a.m., London time, on the Determination Date.
If Telerate Page 3750 does not include such a rate or is unavailable on a
Determination Date, the calculation agent will request the principal London
office of each of four major banks in the London interbank market, as selected
by the calculation agent, to provide such bank&#146;s offered quotation (expressed
as a percentage per annum), as of approximately 11:00&nbsp;a.m., London time, on
such Determination Date, to prime banks in the London interbank market for
deposits in a Representative Amount in United States dollars for a three-month
period beginning on the first day of such Interest Period. If at least two such
offered quotations are so provided, LIBOR for the Interest Period will be the
arithmetic mean of such quotations. If fewer than two such quotations are so
provided, the calculation agent will request each of three major banks in New
York City, as selected by the calculation agent, to provide such bank&#146;s rate
(expressed as a percentage per annum), as of approximately 11:00&nbsp;a.m., New York
City time, on such Determination Date, for loans in a Representative Amount in
United States dollars to leading European banks for a three-month period
beginning on the first day of such Interest Period. If at least two such rates
are so provided, LIBOR for the Interest Period will be the arithmetic mean of
such rates. If fewer than two such rates

<P align="center" style="font-size: 10pt">S-9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">are so provided, then LIBOR for the Interest Period will be LIBOR in effect
with respect to the immediately preceding Interest Period.


<P align="left" style="font-size: 10pt">&#147;<I>Interest Period</I>&#148; means the period commencing on and including an interest
payment date and ending on and including the day immediately preceding the next
succeeding interest payment date, with the exception that the first Interest
Period shall commence on and include March&nbsp;&nbsp;&nbsp;&nbsp;, 2004 and end on and include
June&nbsp;14, 2004.


<P align="left" style="font-size: 10pt">&#147;<I>Determination Date,</I>&#148; with respect to an Interest Period, will be the second
London Banking Day preceding the first day of the Interest Period.


<P align="left" style="font-size: 10pt">&#147;<I>London Banking Day</I>&#148; is any day in which dealings in United States dollars are
transacted or, with respect to any future date, are expected to be transacted
in the London interbank market.


<P align="left" style="font-size: 10pt">&#147;<I>Representative Amount</I>&#148; means a principal amount of not less than U.S.
$1,000,000 for a single transaction in the relevant market at the relevant
time.


<P align="left" style="font-size: 10pt">&#147;<I>Telerate Page 3750</I>&#148; means the display designated as &#147;Page 3750&#148; on the
Moneyline Telerate service (or such other page as may replace Page 3750 on that
service).


<P align="left" style="font-size: 10pt">The amount of interest for each day that the notes are outstanding (the &#147;<I>Daily
Interest Amount</I>&#148;) will be calculated by dividing the interest rate in effect
for such day by 360 and multiplying the result by the principal amount of the
notes. The amount of interest to be paid on the notes for each Interest Period
will be calculated by adding the Daily Interest Amounts for each day in the
Interest Period.


<P align="left" style="font-size: 10pt">All percentages resulting from any of the above calculations will be rounded,
if necessary, to the nearest one hundred-thousandth of a percentage point, with
five one-millionths of a percentage point being rounded upwards (<I>e.g.</I>,
9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all
dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).


<P align="left" style="font-size: 10pt">The interest rate on the notes will in no event be higher than the maximum rate
permitted by New York law as the same may be modified by United States law of
general application.


<P align="left" style="font-size: 10pt">The calculation agent will, upon the request of the holder of any note, provide
the interest rate then in effect with respect to the notes. All calculations
made by the calculation agent in the absence of manifest error will be
conclusive for all purposes and binding on Bowater and the holders of the
notes.



<P align="left" style="font-size: 10pt"><B>Ranking</B>


<P align="left" style="font-size: 10pt">The notes will be our unsecured obligations and will rank equally with all of
our existing and future senior unsecured debt. The notes will rank senior to
any of our debt that may be expressly subordinated to the notes, but will be
effectively subordinated to any secured indebtedness to the extent of assets
securing that indebtedness and to all obligations and liabilities of our
subsidiaries to the extent of their assets. As of December&nbsp;31, 2003, assuming
this offering and our use of proceeds had occurred on that date, Bowater
Incorporated would have had no secured indebtedness on an unconsolidated basis,
and our consolidated subsidiaries would have had indebtedness to third parties
of approximately $1,109&nbsp;million, of which approximately $54&nbsp;million would have
been secured and approximately $598&nbsp;million would have been guaranteed by
Bowater Incorporated. In addition, our operating subsidiaries have significant
current and long-term liabilities. As of December&nbsp;31, 2003, assuming this
offering and our use of net proceeds had occurred on that date, Bowater
Incorporated on an unconsolidated basis would have had approximately $1,402
million of unsecured indebtedness and approximately $454&nbsp;million of additional
unsecured indebtedness available to be borrowed under its credit facilities.



<P align="left" style="font-size: 10pt"><B>Optional Redemption</B>


<P align="left" style="font-size: 10pt">On and after March&nbsp;&nbsp;, 2006, Bowater will be entitled at its option to
redeem all or a portion of the notes upon not less than 30 nor more than 60
days&#146; notice, at the redemption prices (expressed in percentages of principal
amount on the redemption date), plus accrued and unpaid interest to the
redemption date (subject to the right of

<P align="center" style="font-size: 10pt">S-10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">holders of record on the relevant record date to receive interest due on the
relevant interest payment date), if redeemed during the 12-month period
commencing on March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of the years set forth below:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="55%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="68%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Redemption</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Period</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">102.000</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">101.000</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2008 and thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.000</TD>
    <TD nowrap>%</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><B>Restrictive Covenants</B>


<P align="left" style="font-size: 10pt">We define some of the capitalized terms we use in the next two subsections
below under the subsection entitled &#147;Definitions for Restrictive Covenants.&#148;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;<I>Limitation on Liens</I>


<P align="left" style="font-size: 10pt">Neither Bowater nor any Restricted Subsidiary may create, incur, assume or
suffer to exist any Lien upon any Principal Property, whether owned at the date
of the indenture or acquired later, to secure any Indebtedness, without
securing the notes (together with, if Bowater so determines, any Indebtedness
of Bowater or any Restricted Subsidiary that is not subordinate to the notes
and any debt securities of any other series then outstanding under the
indenture) by that Lien equally and ratably with, or prior to, any and all
other Indebtedness secured by it, so long as that Indebtedness is so secured.


<P align="left" style="font-size: 10pt">The foregoing restriction will not apply to Indebtedness secured solely by:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens existing on the date of the indenture (including those securing any refinancing of
debt underlying such liens);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens on any property existing at the time Bowater or a Restricted Subsidiary acquires
it, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens in favor of Bowater or any wholly-owned Restricted Subsidiary;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens in favor of any governmental body to secure progress, advance or other payments
pursuant to any contract or provision of any statute;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens on property to secure all or part of the cost of acquiring, substantially
repairing or altering, constructing, developing or substantially improving the property,
or to secure all or part of such property, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing obligations issued by a State, territory or possession of the United
States or the District of Columbia to finance the acquisition or construction of
property, and on which the interest is not, in the opinion of tax counsel or in
accordance with an Internal Revenue Service ruling, includible in gross income by reason
of Section 103(a) of the Internal Revenue Code of 1986, as amended; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing clauses,
subject to certain limitations.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Bowater and its Restricted Subsidiaries may create, incur, assume or suffer to
exist Liens securing any Indebtedness without equally and ratably securing the
debt securities issued under the indenture, provided that the aggregate amount
of such Indebtedness and Attributable Debt with respect to Sale and Lease-Back
Transactions does not exceed 10% of Bowater&#146;s Consolidated Net Tangible Assets.



<P align="center" style="font-size: 10pt">S-11
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;<I>Limitation on Sale and Lease-Back Transactions</I>


<P align="left" style="font-size: 10pt">Neither Bowater nor any Restricted Subsidiary may enter into any Sale and
Lease-Back Transactions with respect to any Principal Property unless the
aggregate amount of all Attributable Debt with respect to Sale and Lease-Back
Transactions plus the aggregate amount of Indebtedness secured by Liens
incurred without equally and ratably securing the notes pursuant to the
subsection entitled &#147;Limitation on Liens&#148; above, would not exceed 10% of
Bowater&#146;s Consolidated Net Tangible Assets. The foregoing restriction will not
apply to, and there shall be excluded from Attributable Debt in any computation
described in this subsection or in the subsection entitled &#147;Limitation on
Liens&#148; with respect to Sale and Lease-Back Transactions if:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the lease in such Sale and Lease-Back Transaction is for a period,
including renewal rights, of three years or less;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater or any Restricted Subsidiary, within 180&nbsp;days after the Sale
and Lease-Back Transaction, applies an amount not less than the
greater of the net proceeds of the Sale and Lease-Back Transaction or
the fair value of the Principal Property at the time of the Sale and
Lease-Back Transaction to (a)&nbsp;the prepayment or retirement of Funded
Debt of Bowater or any of its Restricted Subsidiaries, subject to
certain limitations, or (b)&nbsp;the purchase of other property that will
constitute Principal Property, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the lease in such Sale and Lease-Back Transaction secures or relates
to obligations issued by a State, territory or possession of the
United States or the District of Columbia to finance the acquisition
or construction of property, and on which the interest is not, in the
opinion of tax counsel or in accordance with an Internal Revenue
Service ruling, includible in gross income of the holder by reason of
Section 103(a) of the Internal Revenue Code of 1986, as amended; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such Sale and Lease-Back Transaction is entered into between Bowater
and a wholly-owned Subsidiary or between wholly-owned Subsidiaries.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Definitions for Restrictive Covenants</B>


<P align="left" style="font-size: 10pt"><B>&#147;Attributable Debt&#148;</B> means, at the time any determination thereof is to be made,
with respect to any lease under which Bowater or any of its Restricted
Subsidiaries is liable, the total net amount of rent Bowater or its Restricted
Subsidiary must pay under such lease during its remaining term, using a
discount rate equal to the weighted average yield to maturity of the notes. By
&#147;net&#148; amount of rent we mean the rent payable by the lessee after excluding
amounts required to be paid on account of maintenance and repairs, insurance,
taxes, assessments, water rates and similar charges. In the case of any lease
which is terminable upon the payment of a penalty, such net amount shall also
include the amount of such penalty, but no rent shall be considered as required
to be paid under such lease subsequent to the first date upon which it may be
terminated.


<P align="left" style="font-size: 10pt"><B>&#147;Consolidated Net Tangible Assets&#148;</B> means, on the date of any determination, the
aggregate amount of assets, less applicable reserves and other properly
deductible items, after deducting:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all current liabilities, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles,</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">all as set forth on the most recent quarterly balance sheet of Bowater and its
consolidated subsidiaries and computed in accordance with accounting principles
generally accepted in the United States.


<P align="left" style="font-size: 10pt"><B>&#147;Funded Debt&#148;</B> means



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Indebtedness having a maturity of more than 12&nbsp;months from the date
as of which the determination is made or having a maturity of 12&nbsp;months or
less but by its terms being renewable or extendible beyond 12</TD>
</TR>

</TABLE>
<P align="center" style="font-size: 10pt">S-12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>months from such date at the option of the borrower (excluding any amount
thereof included in current liabilities); and</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rental obligations payable more than 12&nbsp;months from such date under
leases which are capitalized in accordance with accounting principles
generally accepted in the United States (such rental obligations to be
included as Funded Debt at the amount so capitalized and to be included
for the purposes of the definition of Consolidated Net Tangible Assets
both as an asset and as Funded Debt at the amount so capitalized).</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt"><B>&#147;Indebtedness&#148;</B> means, at any time, without duplication:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations for borrowed money,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations evidenced by bonds, debentures, notes or other similar instruments, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations in respect of any letters of credit supporting any Indebtedness of others and
guarantees of Indebtedness of others.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt"><B>&#147;Lien&#148;</B> means any mortgage, pledge, hypothecation, encumbrance, security
interest, statutory or other lien, or preference, priority or other security or
similar agreement or preferential arrangement of any kind or nature whatsoever,
including any conditional sale or other title retention agreement having
substantially the same economic effect as any of these.


<P align="left" style="font-size: 10pt"><B>&#147;Principal Property&#148;</B> means


<P align="left" style="font-size: 10pt">(1)&nbsp;any mill, converting plant, manufacturing plant or other facility owned
on the date of the indenture or thereafter acquired by Bowater or any
Restricted Subsidiary that is located within the continental United States
and the gross book value (including related land and improvements thereon
and all machinery and equipment included therein without deduction of any
depreciation reserves) of which, on the date as of which the determination
is being made, exceeds 1% of Bowater&#146;s Consolidated Net Tangible Assets,
and


<P align="left" style="font-size: 10pt">(2)&nbsp;Timberlands, in each case other than:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any property which, in the opinion of Bowater&#146;s board of
directors or a board committee as evidenced by a board or
committee resolution, is not of material importance to the
business conducted by Bowater and its Restricted Subsidiaries as
an entirety,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a portion of any property which, in the opinion of
Bowater&#146;s board of directors or a board committee as evidenced by
a board or committee resolution, is not of material importance to
the use or operation of such property, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any oil, gas or other minerals or mineral rights.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt"><B>&#147;Realty Subsidiary&#148;</B> means a subsidiary engaged primarily in the development and
sale or financing of real property.


<P align="left" style="font-size: 10pt"><B>&#147;Restricted Subsidiary&#148;</B> means a subsidiary of Bowater (1)&nbsp;substantially all the
property of which is located, or substantially all the business of which is
carried on, within the continental United States and (2)&nbsp;which owns a Principal
Property, but does not include a Realty Subsidiary.


<P align="left" style="font-size: 10pt"><B>&#147;Sale and Lease-Back Transaction&#148;</B> means any arrangement whereby Bowater or one
of its Restricted Subsidiaries has sold or transferred, or will sell or
transfer, property to a third party and has or will take back a lease pursuant
to which the rental payments are calculated to amortize the purchase price of
the property substantially over the useful life of such property.


<P align="left" style="font-size: 10pt"><B>&#147;Timberlands&#148;</B> means any real property of Bowater or any Restricted Subsidiary
located within the continental United States which contains (or upon completion
of a growth cycle then in process is expected to contain)

<P align="center" style="font-size: 10pt">S-13
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">standing timber of a commercial quantity and of merchantable quality,
excluding, however, any such real property which at the time of determination
is held primarily for development or sale and not primarily for the production
of any lumber or other timber products.



<P align="left" style="font-size: 10pt"><B>Mergers and Similar Events</B>


<P align="left" style="font-size: 10pt">Bowater may not consolidate with or merge into any other person or convey,
transfer or lease its properties and assets substantially as an entirety to any
person, nor may it permit another entity to consolidate with or merge into
Bowater or convey, transfer or lease its properties and assets substantially as
an entirety to Bowater, unless:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if Bowater is not the principal survivor, the successor person is a corporation, partnership or trust organized and validly
existing under the laws of the United States, any State or the District of Columbia;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor person expressly assumes our obligations on the notes and under the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after giving effect to the transaction, no Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, would occur and be continuing; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either Bowater or the successor person takes all necessary steps to bring any secured Indebtedness into compliance with the
&#147;Limitation on Liens&#148; covenant.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Modification and Waiver</B>


<P align="left" style="font-size: 10pt">Acting with the trustee, we may modify and amend the indenture upon receiving
the consent of the holders of 50% of the principal amount of the outstanding
debt securities issued under the indenture, taken together. However, we may
not, without the consent of each holder of the notes:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the stated maturity of the principal or interest on the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce any amounts due on the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the amount of principal payable upon acceleration of the maturity of the notes following a default;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the place or currency of payment of the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right of holders of the notes to sue for payment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage of holders of the notes and other debt securities under the indenture whose consent is needed to
modify or amend the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage of holders of the notes and other debt securities under the indenture whose consent is needed to
waive compliance with certain provisions of the indenture or to waive certain defaults; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>modify any other aspect of the provisions dealing with modification and waiver of the indenture.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Acting with the trustee, we may also modify and amend the indenture without the
consent of holders of debt securities in limited circumstances such as
clarifications and changes that would not adversely affect them.


<P align="left" style="font-size: 10pt">The holders of 50% of the principal amount of the outstanding debt securities
may, before the time for compliance, waive our compliance with the restrictive
covenants in the indenture. The holders of 50% of the principal amount of the
outstanding debt securities may, on behalf of all such holders, waive any past
default under the indenture, except:



<P align="center" style="font-size: 10pt">S-14
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default in the payment of principal of, premium, if any, or interest
on the debt securities (including the notes); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default in respect of a covenant or provision of the indenture that
cannot be modified or amended without the consent of the holder of
each outstanding debt security under the indenture.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">We generally will be entitled to set any day as a record date for the purpose
of determining the holders of outstanding debt securities that are entitled to
vote or take other action under the indenture in accordance with applicable
laws. In limited circumstances, the trustee will be entitled to set a record
date for action by holders. If we or the trustee sets a record date for a vote
or other action to be taken by holders, that vote or action may be taken only
by persons who are holders of outstanding debt securities on the record date
and must be taken within 180&nbsp;days following the record date or a shorter period
that we may specify (or as the trustee may specify, if it sets the record
date). We may shorten or lengthen (but not beyond 180&nbsp;days) this period from
time to time.



<P align="left" style="font-size: 10pt"><B>Defeasance</B>


<P align="left" style="font-size: 10pt">The First Supplemental Indenture will provide that defeasance of the notes will
not be permitted.



<P align="left" style="font-size: 10pt"><B>Reports</B>


<P align="left" style="font-size: 10pt">The indenture provides that Bowater will deliver to the trustee (or make
available through the SEC&#146;s EDGAR system), within 5&nbsp;days after it is required
to file them with the SEC, the annual and quarterly financial statements that
it files with the SEC, including, with respect to annual information only, a
report thereon by its certified independent public accountants. Even if Bowater
is not required to remain subject to the reporting requirements of Section&nbsp;13
or 15(d) of the Securities Exchange Act of 1934, the indenture for the notes
requires Bowater to continue to file with, or furnish to the SEC and to provide
to the trustee (or make available through the SEC&#146;s EDGAR system):



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within 120&nbsp;days after the end of each fiscal year, annual reports on Form
10-K (or any successor form) containing the information required to be
contained therein;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within 60&nbsp;days after the end of the first three fiscal quarters of each
fiscal year, reports on Form 10-Q (or any successor form); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly from time to time after the occurrence of an event required to
be reported by Form 8-K (or any successor form), a Form 8-K with respect
to that event;</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt"><I>provided</I>, <I>however</I>, that Bowater will not be obligated to file such reports with
the SEC if the SEC does not permit such filings.



<P align="left" style="font-size: 10pt"><B>Events of Default</B>


<P align="left" style="font-size: 10pt">The term &#147;event of default&#148; means any of the following:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater does not pay interest on the notes within 30&nbsp;days of its due date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater does not pay the principal or any premium on the notes on its due date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater fails to perform any restrictive covenant or other term of the indenture for 60&nbsp;days after
receipt of notice of such breach and a request to cure from the trustee or holders of at least 25%
of the principal amount of the notes outstanding; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater files for bankruptcy or certain other events of bankruptcy, insolvency or reorganization
occur.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">S-15
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Remedies if an Event of Default Occurs</B>


<P align="left" style="font-size: 10pt">If an event of default has occurred and has not been cured, the trustee or the
holders of 25% of the principal amount of the notes may declare the entire
principal amount of the notes to be due and immediately payable.


<P align="left" style="font-size: 10pt">This is called a declaration of acceleration of maturity. If an event of
default occurs because of certain events in bankruptcy, insolvency or
reorganization, the principal amount of the notes will be automatically
accelerated, without any action by the trustee or any holder. A declaration of
acceleration of maturity for the notes may be canceled by the holders of at
least a majority in principal amount of the notes if we become current in our
payments (other than the accelerated payments) and all other events of default
have been cured or waived.


<P align="left" style="font-size: 10pt">Except in cases of default, where the trustee has some special duties, the
trustee is not required to take any action under the indenture at the request
of any holders unless the holders under the indenture offer the trustee
protection from expenses and liability satisfactory to the trustee, which is
called an indemnity. If reasonable indemnity is provided, the holders of a
majority of the principal amount of the notes may direct the time, method and
place of conducting any lawsuit or other formal legal action seeking any remedy
available to the trustee. These majority holders may also direct the trustee
in performing any other action with respect to the notes under the indenture.


<P align="left" style="font-size: 10pt">Before a holder of the notes may bypass the trustee and bring an independent
lawsuit or other formal legal action or take other steps to enforce rights or
protect interests relating to the notes, the following must occur:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holder must give the trustee written notice that an event of
default has occurred and remains uncured;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holders of 25% in principal amount of all outstanding notes must make
a written request that the trustee take action because of the default,
and must offer indemnity reasonably satisfactory to the trustee
against the cost and other liabilities of taking that action;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trustee must have not taken action for 60&nbsp;days after the receipt
of the above notice and offer of indemnity; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holders of a majority in principal amount of all outstanding notes
must not have given the trustee any direction inconsistent with that
request during such 60&nbsp;day period.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">A holder of the notes is, however, entitled at any time to bring a lawsuit for
the payment of money due on the notes on or after their due date. We will
furnish to the trustee every year a written statement regarding our performance
of our obligations under the indenture and any default in such performance.



<P align="left" style="font-size: 10pt"><B>The Trustee</B>


<P align="left" style="font-size: 10pt">The trustee for the notes is The Bank of New York. The trustee&#146;s current
address is 101 Barclay Street, Floor 8W, New York, New York 10286. The trustee
also serves as the registrar and transfer agent for our common stock, is a
lender under certain of our credit facilities, and serves as a trustee under
other debt securities issued by us and our subsidiaries having an aggregate
principal amount of approximately $1.3&nbsp;billion (excluding the aggregate
principal amount of the notes) at December&nbsp;31, 2003 and in connection with
certain of our pension plans. In addition, an affiliate of the trustee is an
underwriter in this offering. For additional information concerning our
relationship with the trustee and its affiliates, see &#147;Underwriting.&#148;


<P align="left" style="font-size: 10pt">The indenture provides that, except during the continuance of an event of
default, the trustee will perform only such duties as are specifically set
forth in the indenture. During the existence of an event of default, the
trustee may in its discretion proceed to protect and enforce its rights and the
rights of the holders of the notes by such appropriate judicial proceedings as
the trustee shall deem necessary to protect and enforce any such rights.


<P align="left" style="font-size: 10pt">The indenture and provisions of the Trust Indenture Act incorporated by
reference in it contain limitations on the rights of the trustee, should it
become our creditor, to obtain payment of claims in certain cases or to
liquidate certain property received by it in respect of any such claim as
security or otherwise. The trustee is

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">permitted to engage in other transactions with us or any of our affiliates. If
the trustee acquires any conflicting interest (as defined in the indenture or
in the Trust Indenture Act), it must eliminate such conflict or resign.



<P align="left" style="font-size: 10pt"><B>Governing Law</B>


<P align="left" style="font-size: 10pt">The indenture and the notes are governed by the laws of the State of New York.



<P align="left" style="font-size: 10pt"><B>Book-Entry, Delivery and Form of Securities</B>


<P align="left" style="font-size: 10pt">We will issue the notes in the form of one or more global securities to be
deposited with, or on behalf of, The Depository Trust Company (the &#147;depositary&#148;
or &#147;DTC&#148;). &#147;Global securities&#148; represent in the aggregate the total principal
or face amount of the securities and, once on deposit with a depositary, allow
trading of the securities through the depositary&#146;s book-entry system (as
further described below). The global securities will be issued in fully
registered form and will be issued in permanent form. Unless and until it is
exchanged in whole or in part for the individual notes represented thereby, a
global security may not be transferred except as a whole by the depositary to a
nominee of such depositary or by a nominee of such depositary to such
depositary or another nominee of such depositary or by such depositary or any
nominee of such depositary to a successor depositary or any nominee of such
successor.


<P align="left" style="font-size: 10pt">The notes will be deposited on the issue date with, or on behalf of, DTC and
registered in the name of Cede &#038; Co., as nominee of DTC (which we will refer to
as the &#147;global security holder&#148;). DTC will maintain the notes in denominations
of $1,000 and integral multiples thereof through its book-entry facilities.


<P align="left" style="font-size: 10pt">We have been advised as follows:


<P align="left" style="font-size: 10pt">DTC is a limited-purpose trust company that was created to hold securities for
its participating organizations, including the Euroclear System and Clearstream
Banking, Societe Anonyme, Luxembourg (collectively, the &#147;Participants&#148; or the
&#147;Depositary&#146;s Participants&#148;), and to facilitate the clearance and settlement of
transactions in these securities between Participants through electronic
book-entry changes in accounts of its Participants. The Depositary&#146;s
Participants include securities brokers and dealers, banks and trust companies,
clearing corporations and certain other organizations. Access to DTC&#146;s system
is also available to other entities such as banks, brokers, dealers and trust
companies (collectively, the &#147;Indirect Participants&#148; or the &#147;Depositary&#146;s
Indirect Participants&#148;) that clear through or maintain a custodial relationship
with a Participant, either directly or indirectly. Persons who are not
Participants may beneficially own securities held by or on behalf of DTC only
through the Depositary&#146;s Participants or the Depositary&#146;s Indirect
Participants. Pursuant to procedures established by DTC, ownership of the
securities will be shown on, and the transfer of ownership thereof will be
effected only through, records maintained by DTC (with respect to the interests
of the Depositary&#146;s Participants) and the records of the Depositary&#146;s
Participants (with respect to the interests of the Depositary&#146;s Indirect
Participants).


<P align="left" style="font-size: 10pt">The laws of some states may require that certain persons take physical delivery
in definitive form of securities that they own. Consequently, the ability to
transfer notes may be limited to that extent.


<P align="left" style="font-size: 10pt">So long as any global security holder is the registered owner of any applicable
securities, the global security holder will be considered the sole holder of
outstanding securities represented by such global securities under the
indenture. Except as provided below, owners of securities represented by global
certificates will not be entitled to have the securities registered in their
names and will not be considered the owners or holders thereof under the
indenture for any purpose, including with respect to the giving of any
directions, instructions or approvals to the trustee. Neither the issuer of the
securities nor the trustee will have any responsibility or liability for any
aspect of the records relating to or payments made on account of any securities
by DTC, or for maintaining, supervising or reviewing any records of DTC
relating to such securities.


<P align="left" style="font-size: 10pt">Payments in respect of the principal of, premium, if any, and interest on any
securities registered in the name of the global security holder on the
applicable record date will be payable by the trustee to or at the direction of
the global security holder in its capacity as the registered holder under the
indenture. Under the terms of the indenture, Bowater and the trustee may treat
the persons in whose names any securities, including the global securities, are
registered as the owners thereof for the purpose of receiving such payments and
for any and all

<P align="center" style="font-size: 10pt">S-17
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">other purposes whatsoever. Consequently, neither Bowater nor the trustee has or
will have any responsibility or liability for the payment of such amounts to
beneficial owners of any securities (including principal, premium, if any, and
interest). We believe, however, that it is currently the policy of DTC to
immediately credit the accounts of the relevant Participants with such
payments, in amounts proportionate to their respective beneficial interests in
the relevant security as shown on the records of DTC. Payments by the
Depositary&#146;s Participants and the Depositary&#146;s Indirect Participants to the
beneficial owners of securities will be governed by standing instructions and
customary practice and will be the responsibility of the Depositary&#146;s
Participants or the Depositary&#146;s Indirect Participants.


<P align="left" style="font-size: 10pt">Subject to certain conditions, any person having a beneficial interest in the
global securities may, upon request to the trustee and confirmation of such
beneficial interest by the Depositary or its Indirect Participants, exchange
such beneficial interest for the security in definitive form. Upon any such
issuance, the trustee is required to register such security in the name of, and
cause the same to be delivered to, such person or persons (or the nominee of
any thereof). In addition, if (1)&nbsp;we notify the trustee in writing that DTC is
no longer willing or able to act as a depositary and we are unable to locate a
qualified successor within 90&nbsp;days or (2)&nbsp;we, at our option, notify the trustee
in writing that we elect to cause the issuance of the notes in definitive form
under the indenture, then, upon surrender by the global security holder of its
global security, the notes in such form will be issued to each person that such
global security holder and DTC identify as being the beneficial owner of the
notes. Neither Bowater nor the trustee will be liable for any delay by the
global security holder or DTC in identifying the beneficial owners of the notes
and Bowater and the trustee may conclusively rely on, and will be protected in
relying on, instructions from the global security holder or DTC for all
purposes.


<P align="left" style="font-size: 10pt">The information in this section concerning DTC and its book-entry system has
been obtained from sources that we believe to be reliable, but we take no
responsibility for the accuracy thereof.



<P align="center" style="font-size: 10pt">S-18
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Underwriting</B>


<P align="left" style="font-size: 10pt">UBS Securities LLC and J.P. Morgan Securities Inc. are acting as joint
book-running managers of the offering.


<P align="left" style="font-size: 10pt">Subject to the terms and conditions stated in the underwriting agreement dated
the date of this prospectus supplement, each underwriter named below has
severally agreed to purchase, and we have agreed to sell to that underwriter,
the principal amount of notes set forth opposite the underwriter&#146;s name.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="55%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="69%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Underwriter</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>the notes</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="3"><B>(in millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">UBS Securities LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">J.P. Morgan Securities Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scotia Capital (USA)&nbsp;Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Harris Nesbitt Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Wachovia Capital Markets LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">SunTrust Capital Markets, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Banc of America Securities LLC.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">TD Securities (USA)&nbsp;Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">BNY Capital Markets, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">CIBC Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Barclays Capital Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">The underwriting agreement provides that the obligations of the several
underwriters to purchase the notes included in this offering are subject to
approval of legal matters by counsel and to other conditions. The underwriters
are obligated to purchase all of the notes if they purchase any of the notes.


<P align="left" style="font-size: 10pt">The underwriters will purchase the notes from Bowater at a per note price of $
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.


<P align="left" style="font-size: 10pt">The notes will be sold to the public at a per note price
of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . On an
aggregate basis, the notes will be sold to the public at a price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. We will receive all of the proceeds from such sale, before deducting expenses.


<P align="left" style="font-size: 10pt">The underwriters propose to offer some of the notes directly to the public at
the per note public offering price set forth above and some of the notes to
dealers at the public offering price less a concession not to exceed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of
the principal amount of the notes. The underwriters may allow, and dealers may
reallow, a concession not to exceed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the principal amount of the notes
on sales to other dealers. After the initial offering of the notes to the
public, the underwriters may change the public offering price and concessions.


<P align="left" style="font-size: 10pt">In connection with the offering the underwriters may purchase and sell notes in
the open market. These transactions may include over-allotment, syndicate
covering transactions and stabilizing transactions. Over-allotment involves
syndicate sales of notes in excess of the principal amount of notes to be
purchased by the underwriters in this offering, which creates a syndicate short
position. Syndicate covering transactions involve purchases of the notes in the
open market after the distribution has been completed in order to cover
syndicate short positions. Stabilizing transactions consist of certain bids or
purchases of notes made for the purpose of preventing or retarding a decline in
the market price of the notes while the offering is in progress.


<P align="left" style="font-size: 10pt">The underwriters may impose a penalty bid. Penalty bids permit the underwriters
to reclaim a selling concession from a syndicate member when an underwriter, in
covering syndicate short positions or making stabilizing purchases, repurchases
notes originally sold by that syndicate member.


<P align="left" style="font-size: 10pt">Any of these activities may have the effect of preventing or retarding a
decline in the market price of the notes. They may also cause the price of the
notes to be higher than the price that otherwise would exist in the open market
in the absence of these transactions. The underwriter may conduct these
transactions in the over-the-

<P align="center" style="font-size: 10pt">S-19
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">counter market or otherwise. If the underwriters commence any of these
transactions, they may discontinue them at any time.


<P align="left" style="font-size: 10pt">We estimate that our total expenses for this offering will be approximately
$4.4&nbsp;million.


<P align="left" style="font-size: 10pt">We expect to deliver the notes against payment for the notes on or about the
date specified in the last paragraph of the cover page of this prospectus
supplement, which will be the fifth business day following the date of the
pricing of the notes. Under Rule&nbsp;15c6-1 of the Securities Exchange Act of 1934,
trades in the secondary market generally are required to settle in three
business days, unless the parties to a trade expressly agree otherwise.
Accordingly, purchasers who wish to trade notes on the date of pricing or the
next succeeding business day will be required, by virtue of the fact that the
notes initially will settle in T&#043;5, to specify alternative settlement
arrangements to prevent a failed settlement.


<P align="left" style="font-size: 10pt">The underwriters and their respective affiliates have in the past engaged in,
and may in the future engage in transactions with and perform services,
including commercial banking, financial advisory and investment banking
transactions, for us and our affiliates in the ordinary course of business.


<P align="left" style="font-size: 10pt">The Bank of New York, an affiliate of BNY Capital Markets, Inc., will act as
trustee for the notes. For additional information concerning our relationship
with the trustee, see &#147;Description of Notes &#150; The Trustee.&#148;


<P align="left" style="font-size: 10pt">Each underwriter, or one of its affiliates, other than Barclays Capital Inc.,
is a lender under Bowater Incorporated&#146;s $500&nbsp;million revolving credit facility
and its $100&nbsp;million term loan. At March&nbsp;8, 2004, the aggregate commitments of
the underwriters and underwriters&#146; affiliates, as applicable, totaled
approximately $441 million, or 88%, of the revolving credit facility commitments
and approximately $76&nbsp;million, or 76%, of the term loan commitments. The Company
intends to use a portion of the net proceeds of this offering to repay all
outstanding principal, together with accrued and unpaid interest, under these
credit facilities; however, the revolving credit facility will not be
terminated. The entire $100&nbsp;million principal amount of the term loan is
currently outstanding and is expected to be outstanding immediately prior to
payment in full. The outstanding amount under the revolving credit facility
fluctuates from time to time. At December&nbsp;31, 2003, the amount outstanding
under the revolving credit facility was $38.4&nbsp;million. The amount outstanding
at the time the proceeds of this offering are used to pay off the outstanding
balance on the revolving credit facility could vary significantly from this
amount. The lenders under these credit facilities may transfer their
commitments, subject to certain conditions, so the individual and aggregate
commitments at the time of payoff could also vary from the amounts set forth
above.


<P align="left" style="font-size: 10pt">L. Jacque M&#233;nard, who has been a director of Bowater since 2002, is the
Chairman of BMO Nesbitt Burns Corp. and President of BMO Financial Group,
Qu&#233;bec, each of which is an affiliate of Harris Nesbitt Corp.


<P align="left" style="font-size: 10pt">In addition to the foregoing, the Bank of Montreal, an affiliate of Harris
Nesbitt Corp., The Bank of Nova Scotia, an affiliate of Scotia Capital (USA)
Inc., Canadian Imperial Bank of Commerce, an affiliate of CIBC Inc., and The
Toronto-Dominion Bank, an affiliate of TD Securities (USA)&nbsp;Inc. are the lenders
under a $100&nbsp;million 364-day credit facility of Bowater Incorporated&#146;s
subsidiary, Bowater Canadian Forest Products Inc., which is guaranteed by
Bowater Incorporated.


<P align="left" style="font-size: 10pt">In a Schedule&nbsp;13G dated as of December&nbsp;31, 2003, and filed February&nbsp;12, 2004,
J.P. Morgan Chase &#038; Co., an affiliate of one of the joint book-running
managers, reported on behalf of itself and certain of its wholly-owned
subsidiaries that it is the beneficial owner of 2,792,260 shares, or
approximately 5%, of Bowater Incorporated&#146;s total outstanding shares as of December&nbsp;31,
2003.


<P align="left" style="font-size: 10pt">Because more than 10% of the proceeds of this offering, not including
underwriting compensation, may be received by entities that are affiliated with
National Association of Securities Dealers, Inc. members that are participating
in this offering, this offering is being conducted in compliance with the
National Association of Securities Dealers Conduct rules 2710(c)(8) and 2720.
Pursuant to those rules, the yield of a debt security can be no lower than that
recommended by a qualified independent underwriter, or QIU, which has
participated in the

<P align="center" style="font-size: 10pt">S-20
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">preparation of this prospectus supplement and performed its usual standard of
due diligence with respect to this prospectus supplement. In accordance with
this requirement, Barclays Capital Inc. has agreed to act as qualified
independent underwriter with respect to the offering, and the yield of the
notes will be no lower than that recommended by Barclays Capital Inc. Barclays
Capital Inc. has performed due diligence investigations and reviewed and
participated in the preparation of this prospectus supplement.


<P align="left" style="font-size: 10pt">Barclays Capital Inc. will receive a fee of $100,000 as compensation for its
services as QIU.


<P align="left" style="font-size: 10pt">We have agreed to indemnify the underwriters and the QIU against certain
liabilities, including liabilities under the Securities Act of 1933, as
amended, or to contribute to payments the underwriters may be required to make
because of any of those liabilities.



<P align="left" style="font-size: 10pt"><B>Legal Matters</B>


<P align="left" style="font-size: 10pt">The validity of the notes will be passed upon for us by Wyche, Burgess, Freeman
&#038; Parham, P.A. Certain matters in connection with this offering will be passed
upon by Cahill Gordon &#038; Reindel LLP, New York, New York.




<P align="center" style="font-size: 10pt">S-21
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and
Exchange Commission is effective. This prospectus is not an offer to sell
these securities and we are not soliciting offers to buy these securities in
any jurisdiction where such offer or solicitation is not permitted.


<P align="center" style="font-size: 10pt"><B>Preliminary Prospectus</B>



<P align="center" style="font-size: 10pt"><B>Subject to Completion, Dated September&nbsp;17, 2003</B>



<P align="center" style="font-size: 10pt"><B>$750,000,000</B>



<P align="center" style="font-size: 10pt"><IMG src="g87692g8769200.gif" alt="(BOWATER)">



<P align="center" style="font-size: 10pt"><B>Bowater Incorporated</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B>Preferred Stock</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Stock Purchase Contracts</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B>Depositary Shares</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Stock Purchase Units</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B>Warrants</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Debt Securities</B></TD>
</TR>


<!-- End Table Body -->
 </TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>Bowater Capital Trust I<BR>
Bowater Capital Trust II</B>



<P align="center" style="font-size: 10pt"><B>Trust Preferred Securities fully and unconditionally guaranteed to the<BR>
extent provided in this prospectus by Bowater Incorporated</B>



<P align="center" style="font-size: 10pt"><HR align="center" size="1" noshade width="90%">


<P align="left" style="font-size: 10pt">The following are types of securities that may be offered and sold under this
prospectus:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common Stock</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preferred Stock</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Depositary
Shares</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Warrants</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock Purchase Contracts</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock Purchase Units</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Debt Securities</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Trust Preferred Securities, with Guarantees</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">A prospectus supplement, which must accompany this prospectus, will describe
the securities Bowater Incorporated and/or the trusts are offering and selling,
as well as the specific terms of the securities. Those terms may include,
among others, as applicable:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maturity</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest rate</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dividend rate</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sinking fund
terms</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ranking</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Redemption terms</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Conversion terms</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Listing on a securities exchange</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount payable at maturity</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><HR align="center" size="1" noshade width="90%">


<P align="left" style="font-size: 10pt"><B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.</B>


<P align="left" style="font-size: 10pt"><HR align="center" size="1" noshade width="90%">


<P align="left" style="font-size: 10pt">Bowater Incorporated&#146;s common stock is traded on the New York Stock Exchange
(stock symbol &#147;BOW&#148;), the Pacific Exchange, Inc. and The London Stock Exchange.
A special class of stock exchangeable into Bowater Incorporated common stock is
listed on the Toronto Stock Exchange (stock symbol &#147;BWX&#148;).


<P align="left" style="font-size: 10pt">The securities may be offered in amounts, at prices and on terms determined at
the time of offering. The securities may be sold directly to you, through
agents that Bowater Incorporated and/or the applicable trust may elect, or
through underwriters and dealers that Bowater Incorporated and/or the
applicable trust may elect. If Bowater Incorporated and/or the applicable
trust use agents, underwriters or dealers to sell the securities, Bowater
Incorporated and/or the applicable trust will name them and describe their
compensation in a prospectus supplement.



<P align="center" style="font-size: 10pt">September&nbsp;17, 2003




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">TABLE OF CONTENTS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#101" -->Forward-Looking Statements
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#102" -->About This Prospectus
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#103" -->Where You Can Find More Information
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#104" -->Important Notice to Readers
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#105" -->Bowater Incorporated
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#106" -->The Trusts
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#107" -->Use of Proceeds
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#108" -->Ratio of Earnings to Fixed Charges and
Ratio of Combined Fixed Charges and Preference Dividends to Earnings
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#109" -->General Description of the Offered Securities
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#110" -->Description of Capital Stock
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#111" -->Description of Depositary Shares
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#112" -->Description of Warrants
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#113" -->Description of Stock Purchase Contracts and Stock Purchase Units
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#114" -->Description of Debt Securities
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#115" -->Description of the Trust Preferred Securities
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#116" -->Description of the Trust Preferred Securities Guarantees
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#117" -->Plan of Distribution
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#118" -->Legal Matters
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!-- A href="#119" -->Experts
<!-- /A --></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>


<!-- End Table Body -->
 </TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Forward-Looking Statements</B>


<P align="left" style="font-size: 10pt">Statements that are not reported financial results or other historical
information are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. This prospectus, each of Bowater
Incorporated&#146;s annual reports to shareholders, Forms 10-K, 10-Q and 8-K, proxy
statements, prospectuses and any other written or oral statement made by us or
on our behalf previously or in the future may include forward-looking
statements including, for example, statements about our business outlook,
assessment of market conditions, strategies, future plans, future sales, prices
for our major products, inventory levels, capital spending and tax and exchange
rates. These forward-looking statements are not guarantees of future
performance. These statements are based on management&#146;s expectations that
involve a number of business risks and uncertainties, any of which could cause
actual results to differ materially from those expressed in or implied by the
forward-looking statements. In addition to specific factors described in
connection with any particular forward-looking statement, factors that could
cause actual results to differ materially include, but are not limited to,
those in the section entitled &#147;Risk Factors Related to Our Business&#148; of Bowater
Incorporated&#146;s June&nbsp;30, 2003 10-Q and any other report, proxy statement or
prospectus Bowater Incorporated subsequently files with the Securities and
Exchange Commission incorporated by reference into this prospectus, although
other risks besides those could adversely affect us. We disclaim any obligation
to publicly update or revise any forward-looking statements.



<P align="left" style="font-size: 10pt"><B>About This Prospectus</B>

<P align="left" style="font-size: 10pt">This prospectus is part of a registration statement that Bowater Incorporated
and the trusts filed with the Securities and Exchange Commission (the &#147;SEC&#148;)
utilizing a &#147;shelf&#148; registration process, relating to:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s common stock, preferred stock, depositary
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares, warrants, stock purchase contracts, stock purchase units, debt
securities and guarantees of trust preferred securities; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trust preferred securities of Bowater Capital Trust I and
Bowater Capital Trust II described in this prospectus.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Under this shelf process, Bowater Incorporated and the trusts may sell the
securities described in this prospectus in one or more offerings up to a total
amount of $750,000,000 (measured by offering price in the case of equity
securities and by principal amount in the case of debt securities). This
prospectus provides you with a general description of the securities that
Bowater Incorporated and the trusts may offer. As permitted by the rules and
regulations of the SEC, this prospectus does not contain all of the information
set forth in the registration statement. For additional information regarding
Bowater Incorporated or the trusts and the offered securities, please refer to
the registration statement. Each time Bowater Incorporated or a trust sells
securities it will provide a prospectus supplement that will contain specific
information about the terms of that offering. The prospectus supplement may
also supplement or update information contained in this prospectus, except that
the prospectus supplement may not make material changes to the information in
this prospectus such that it materially alters the nature of the offering or
the securities offered. You should read both this prospectus and any
prospectus supplement together with additional information described under the
heading &#147;Where You Can Find More Information.&#148;


<P align="left" style="font-size: 10pt"><B>In this prospectus and in any prospectus supplement, unless the context
requires otherwise, &#147;Bowater,&#148; &#147;we,&#148; &#147;our&#148; and &#147;us&#148; refer to Bowater
Incorporated and not its subsidiaries. However, in the discussions under the
following headings, these terms refer to Bowater Incorporated with its
consolidated subsidiaries, unless the context requires otherwise:
&#147;Forward-Looking Statements;&#148; &#147;Where You Can Find More Information;&#148; &#147;Important
Notice to Readers;&#148; &#147;Bowater</B>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>Incorporated;&#148; and &#147;Ratio of Earnings to Fixed Charges and Ratio of Combined
Fixed Charges and Preference Dividends to Earnings.&#148;</B>



<P align="left" style="font-size: 10pt"><B>Where You Can Find More Information</B>


<P align="left" style="font-size: 10pt"><B>BOWATER INCORPORATED</B>


<P align="left" style="font-size: 10pt">Bowater Incorporated files annual, quarterly and current reports, proxy
statements and other information with the Securities and Exchange Commission,
which we refer to as the SEC. Its SEC filings are available over the Internet
at the SEC&#146;s website at http://www.sec.gov and through Bowater Incorporated&#146;s
website (http://www.bowater.com).


<P align="left" style="font-size: 10pt">You may also obtain copies of the documents at prescribed rates by writing to
the Public Reference Section of the SEC at 450 Fifth Street, N.W., Washington,
D.C. 20549. Please call 1-800-SEC-0330 for further information on the
operations of the public reference facilities. Bowater&#146;s SEC filings are also
available at the office of the New York Stock Exchange, 20 Broad Street, New
York, New York 10005.


<P align="left" style="font-size: 10pt"><B>We &#147;incorporate by reference&#148; in this prospectus certain information filed by
Bowater Incorporated with the SEC, which means that we disclose important
business and financial information to you by referring to those documents.
Those documents are not included in or delivered with this prospectus. The
information incorporated by reference is an important part of this prospectus,
and information that Bowater Incorporated subsequently files with the SEC will
automatically update and supersede the information in this prospectus and in
Bowater Incorporated&#146;s other filings with the SEC.</B>


<P align="left" style="font-size: 10pt">We incorporate by reference the documents listed below, which Bowater
Incorporated has already filed with the SEC, and any future documents and
information filed (but not furnished) by Bowater Incorporated with the SEC
under Section&nbsp;13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934
until all offerings covered by this prospectus are completed:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s Annual Report on Form 10-K for the year
ended December&nbsp;31, 2002;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s Quarterly Report on Form 10-Q for the
quarter ended March&nbsp;31, 2003;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s Quarterly Report on Form 10-Q for the quarter ended June&nbsp;30, 2003;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s Current Report on Form 8-K filed on June&nbsp;12, 2003; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Incorporated&#146;s Current Report on Form 8-K filed on June&nbsp;17, 2003.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">This information is available without charge upon written or oral request. You
may request this information by writing to Bowater Incorporated at Post Office
Box 1028, Greenville, South Carolina 29602-1028 (Attention: Investor Relations
Department) or by calling (864)&nbsp;282-9430. You may also obtain this information
through Bowater Incorporated&#146;s website (http://www.bowater.com).


<P align="left" style="font-size: 10pt"><B>To obtain timely delivery of information requested, you must make your request
no later than five business days before the date on which you must make your
investment decision.</B>



<P align="left" style="font-size: 10pt"><B>THE TRUSTS</B>

<P align="left" style="font-size: 10pt">Neither of the trusts is currently subject to the information reporting
requirements of the Securities Exchange Act. No separate financial statements
of the trusts have been included in this prospectus. We do not believe that
separate financial statements would be material to holders of the trust
preferred securities because:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of the voting securities of the trusts will be owned, directly
or indirectly, by Bowater Incorporated, a reporting company under the
Exchange Act,</TD>
</TR>

</TABLE>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trusts have no independent operations and exist for the sole
purpose of issuing securities representing undivided beneficial
interests in the assets of the applicable trust and investing the
proceeds in debt securities issued by Bowater Incorporated, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the obligations of each trust under the trust securities are fully
and unconditionally guaranteed by Bowater Incorporated to the extent
that the trust has funds available to meet its obligations.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">See the sections entitled &#147;The Trusts,&#148; &#147;Description of the Trust Preferred
Securities&#148; and &#147;Description of the Trust Preferred Securities Guarantees.&#148;



<P align="left" style="font-size: 10pt"><B>Important Notice to Readers</B>

<P align="left" style="font-size: 10pt">No person is authorized to give any information or to make any representation
not contained in this prospectus (including information expressly incorporated
in this prospectus by reference) or any prospectus supplement in connection
with this offering. If given or made, you should not rely on such information
or representations as having been authorized by us. This prospectus does not
constitute an offer to sell, or a solicitation of an offer to buy, the offered
securities in any jurisdiction where, or to any person to whom, it is unlawful
to make such offer or solicitation. Neither the delivery of this prospectus nor
any sale made under it shall, under any circumstances, create any implication
that there has been no change in the information set forth in this prospectus
or in our affairs since the date of this prospectus.


<P align="left" style="font-size: 10pt">The information contained in this prospectus has been provided by us and by
other sources. We believe, but cannot assure you, that the information
provided by other sources is accurate and complete. We also cannot assure you
that an investment in our securities is appropriate for your particular
circumstances. In making an investment decision, you must rely on your own
examination of our company and the terms of the offerings covered by this
prospectus and any applicable prospectus supplement, including the merits and
risks involved. The contents of this prospectus are not to be construed as
legal, business or tax advice. You should consult your own attorneys, business
advisors and tax advisors as to legal, business or tax advice.


<P align="left" style="font-size: 10pt">This prospectus contains summaries intended to be accurate with respect to
certain terms of certain documents, but we refer you to the actual documents,
which will be made available to you upon request to us, for complete
information with respect to these documents, and all the summaries are
qualified in their entirety by this reference to the actual documents.



<P align="left" style="font-size: 10pt"><B>Bowater Incorporated</B>

<P align="left" style="font-size: 10pt">We are a leading producer of newsprint and coated groundwood papers. In
addition, we make uncoated groundwood papers, bleached kraft pulp and lumber
products. We operate facilities in the United States, Canada and South Korea
and our operations are supported by approximately 1.4&nbsp;million acres of
timberlands owned or leased in the United States and Canada and approximately
32&nbsp;million acres of timber cutting rights in Canada. We market and distribute
our products throughout the world. No single customer, related or otherwise,
accounted for 10% or more of our 2002 consolidated sales.


<P align="left" style="font-size: 10pt">We completed our acquisition of Alliance Forest Products Inc. (&#147;Alliance&#148;) on
September&nbsp;24, 2001. The results of Alliance&#146;s operations have been included in
our consolidated financial statements since then. Before the acquisition,
Alliance was an integrated company specializing in timber harvesting and forest
management, as well as the production and sale of newsprint, uncoated specialty
paper, pulp, lumber and related products. Alliance had operations in Canada and
the United States. The acquisition added modern, low-cost supercalendered and
specialty paper production at Donnacona and Dolbeau, Quebec, enabling Bowater
to offer a full spectrum of groundwood paper grades. Alliance&#146;s extensive
sawmill system and approximately 18&nbsp;million acres of cutting rights support
Bowater&#146;s expanded operations. Also, a strategically located mill in Coosa
Pines, Alabama, which produces market fluff pulp and newsprint and was
modernized in the first quarter of 2002 to produce 100% recycled fiber
newsprint, enhances




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<P align="left" style="font-size: 10pt">Bowater&#146;s customer service capabilities. Bowater was incorporated in Delaware
in 1964. Our principal executive offices are located at 55 East Camperdown Way,
Greenville, South Carolina 29601. Our mailing address is Post Office Box 1028,
Greenville, South Carolina 29602-1028, and our telephone number at that address
is (864)&nbsp;271-7733.



<P align="left" style="font-size: 10pt"><B>The Trusts</B>

<P align="left" style="font-size: 10pt">Each of Bowater Capital Trust I and Bowater Capital Trust II is a statutory
trust formed under Delaware law pursuant to (1)&nbsp;a separate declaration of
trust, executed by Bowater Incorporated, as sponsor for the trust (the
&#147;sponsor&#148;), and the trustees of the trusts, and (2)&nbsp;the filing of a separate
certificate of trust with the Delaware Secretary of State. The declaration of
trust of each trust will be amended and restated in its entirety (as so amended
and restated, the &#147;declaration&#148;) substantially in the form included as an
exhibit to the registration statement of which this prospectus forms a part.


<P align="left" style="font-size: 10pt">Each trust exists for the exclusive purposes of (1)&nbsp;issuing and selling the
trust preferred securities representing preferred undivided beneficial
interests in the assets of the trust to investors and trust common securities
representing common undivided beneficial interests in the assets of the trust
to Bowater (the trust common securities and the trust preferred securities are
sometimes called the &#147;trust securities&#148; in this prospectus), (2)&nbsp;investing the
proceeds of the trust securities in debt securities of Bowater, and (3)
engaging in only those other activities necessary or incidental thereto.


<P align="left" style="font-size: 10pt">All of the trust common securities will be directly or indirectly owned by
Bowater. The trust common securities will rank equal with, and payments will
be made thereon <I>pro rata </I>with, the trust preferred securities except that the
trust common securities will have full voting rights and if an event of default
has occurred and is continuing under the declaration, (1)&nbsp;the rights of the
holders of the trust common securities to payment in respect of distributions
and payments upon liquidation, redemption and otherwise will be subordinated to
the rights of the holders of the trust preferred securities, and (2)&nbsp;holders of
the trust preferred securities instead of holders of the trust common
securities will have the right to appoint, remove or replace the property
trustee and the Delaware trustee (each as defined below). Each trust will have
a term to be specified in the applicable declaration, but may terminate earlier
as provided in the applicable declaration.


<P align="left" style="font-size: 10pt">Each trust&#146;s business and affairs will be conducted by the trustees appointed
by Bowater, as the direct or indirect holder of all the trust common
securities. David G. Maffucci (Bowater&#146;s Executive Vice President and Chief
Financial Officer) and William G. Harvey (Bowater&#146;s Vice President and
Treasurer) are currently administrative trustees of each of the trusts. The
holder of the trust common securities will have sole authority to appoint,
remove or replace any of, or increase or reduce the number of, the trustees of
a trust except that if an event of default has occurred and is continuing under
the applicable declaration of trust, the holders of the trust preferred
securities will have the right to appoint, remove or replace the property
trustee and the Delaware trustee (each as defined below). The duties and
obligations of the trustees will be governed by the declaration of the
applicable trust, by the Delaware Statutory Trust Act and, in the case of the
property trustee (as defined below), by the Trust Indenture Act of 1939, as
amended (the &#147;Trust Indenture Act&#148;).


<P align="left" style="font-size: 10pt">The Bank of New York will act as property trustee pursuant to the terms
described in a prospectus supplement (the &#147;property trustee&#148;). The property
trustee&#146;s affiliate, The Bank of New York (Delaware), serves as the trustee
with a principal place of business in Delaware (the &#147;Delaware trustee&#148;) for
each trust. The Bank of New York will also serve as the guarantee trustee for
each trust. Bowater Incorporated will pay all fees, expenses, debts and
obligations (other than the trust securities) related to the trusts and the
offering of trust securities. The office of the Delaware trustee for each
trust in the State of Delaware is 110 White Clay Center, Route 273, Newark,
Delaware 19711. The principal place of business of each trust will be c/o
Bowater Incorporated, 55 East Camperdown Way, Greenville, South Carolina 29601
(telephone number (864)&nbsp;271-7733).



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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Use of Proceeds</B>

<P align="left" style="font-size: 10pt">Except as otherwise described in any prospectus supplement relating to an
offering of securities, the net proceeds from any sale of the securities
included in this prospectus will be used for general corporate purposes, and
each trust will invest all proceeds received from any sale of its trust
securities in debt securities of Bowater Incorporated, which will use those
funds for general corporate purposes. Any allocation of the net proceeds of an
offering of securities to a specific purpose will be determined at the time of
the offering and will be described in the related prospectus supplement.


<P align="left" style="font-size: 10pt"><B>Ratio of Earnings to Fixed Charges and Ratio of Combined Fixed Charges and
Preference Dividends to Earnings</B>


<P align="left" style="font-size: 10pt">Our ratio of earnings to fixed charges and our ratio of combined fixed charges
and preference dividends to earnings for each of the periods indicated are as
follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>June 30,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Fiscal Year Ended December 31,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1998</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Ratio of Earnings to Fixed Charges*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1x</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Ratio of Combined Fixed Charges
and Preference Dividends to
Earnings*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.5x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1x</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
 </TABLE>
</DIV>




<P>

<HR size="1" width="18%" align="left" noshade>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">The ratio of earnings to fixed charges is computed by dividing earnings
by fixed charges, and the ratio of combined fixed charges and preference
dividends to earnings is computed by dividing earnings by the sum of fixed
charges and preference dividends. Earnings consist of income before income
taxes and minority interests plus interest expense (excluding interest
capitalized during the period and amortization of previously capitalized
interest) plus the portion of rental expenses representative of the
interest factor. Fixed charges consist of total interest expense
(including interest capitalized during the period) plus the portion of
rental expense representative of the interest factor plus amortized
premium and discount related to indebtedness. Preference dividends
consist of dividends declared and paid with respect to any shares of our
preferred stock. We did not have any preferred stock (other than the share
of special voting stock described below) outstanding during fiscal years
2002, 2001 or 2000 or the six months ended June&nbsp;30, 2003.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">&#134;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">In fiscal year 2002 and the six month periods ended June&nbsp;30, 2003 and
2002, fixed charges exceeded earnings by $259.5&nbsp;million, $120.9&nbsp;million
and $78&nbsp;million, respectively; and in those periods, there were no
preference dividends.</TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt"><B>General Description of the Offered Securities</B>

<P align="left" style="font-size: 10pt">Bowater Incorporated may offer from time to time under this prospectus, separately or together:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>common stock,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>preferred stock,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>depositary shares,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>warrants to purchase common stock, preferred stock, depositary
shares, debt securities or any combination of these securities,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stock purchase contracts,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stock purchase units, each representing ownership of one or more
stock purchase contracts together with other securities (including
without limitation shares of our common or preferred stock, our
depositary shares, our warrants, our debt securities, trust preferred
securities issued by either trust, debt obligations of third parties
(including U.S. treasury securities), any other security described in
the applicable prospectus supplement and any combination of these),</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">-5-
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unsecured senior, subordinated or junior subordinated debt
securities.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Each trust may offer from time to time under this prospectus trust preferred
securities representing undivided beneficial interests in its respective
assets, which will be fully and unconditionally guaranteed to the extent
described in this prospectus by Bowater Incorporated.


<P align="left" style="font-size: 10pt">The aggregate amount of the offered securities will not exceed $750,000,000
(measured by offering price in the case of equity securities and by principal
amount in the case of debt securities).



<P align="left" style="font-size: 10pt"><B>Description of Capital Stock</B>


<P align="left" style="font-size: 10pt"><B>OUR COMMON STOCK</B>


<P align="left" style="font-size: 10pt">We are authorized to issue 100,000,000 shares of our common stock. As of
September&nbsp;12, 2003, there were 55,396,655 shares of our common stock issued and
outstanding. In addition, our subsidiary Bowater Canada Inc. has a class of
exchangeable shares, which are exchangeable into Bowater common stock on a
one-for-one basis and have voting rights equivalent to those of the holders of
common stock of Bowater. As of September&nbsp;12, 2003, there were 1,642,172
exchangeable shares outstanding and entitled to give voting instructions.


<P align="left" style="font-size: 10pt">The holders of our common stock are entitled to one vote for each share held of
record on all matters submitted to a vote of the holders of our common stock.
Our Restated Certificate of Incorporation does not authorize cumulative voting
for the election of directors. Subject to the rights of the holders of any
class of our capital stock having any preference or priority over our common
stock, the holders of shares of our common stock are entitled to receive
dividends that are declared by the board of directors out of legally available
funds. In the event of our liquidation, dissolution or winding-up, the holders
of common stock are entitled to share ratably our net assets remaining after
payment of liabilities, subject to prior rights of preferred stock, if any,
then outstanding. Our common stock has no preemptive rights, conversion
rights, redemption rights or sinking fund provisions, and there are no
dividends in arrears or default.


<P align="left" style="font-size: 10pt">The Support Agreement, dated July&nbsp;24, 1998, among us, Bowater Canadian Holdings
Incorporated and Bowater Canada Inc. (both of which are our subsidiaries)
pertaining to Bowater Canada&#146;s exchangeable shares, prohibits us from declaring
or paying any dividend on our common stock unless:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Canada has sufficient money or other assets or authorized
but unissued securities available to enable the due declaration and the
due and punctual payment, in accordance with applicable law, of an
equivalent dividend on the exchangeable shares; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater Canada immediately thereafter declares or pays, as the case
may be, an equivalent dividend on the exchangeable shares.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The registration statement that includes this base prospectus registers
additional shares of common stock that may be issued in the future. The
prospectus supplement relating to a particular issuance will describe the
specific terms of any such issuance of common stock.



<P align="left" style="font-size: 10pt"><B>OUR PREFERRED STOCK</B>

<P align="left" style="font-size: 10pt">Our board of directors has the authority, without further vote or action by our
stockholders, to issue from time to time up to 10,000,000 shares of preferred
stock in one or more series, and to fix the rights, preferences, privileges,
qualifications, limitations and restrictions granted to or imposed upon any
wholly unissued series of undesignated preferred stock, including but not
limited to dividend rights, if any, voting rights, if any, and liquidation and
conversion rights, if any. At this time the only outstanding preferred stock
is the single share of special voting stock discussed below. Our board may
authorize or create stock ranking prior to any series of preferred stock only
in specified circumstances described in &#147;Voting Rights




<P align="center" style="font-size: 10pt">-6-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">- Holders&#146; Approval Required&#148; below. The preferred stock could be used by us to
impede the ability of third parties to acquire control of us without the
cooperation of our board of directors.



<P align="left" style="font-size: 10pt"><B>Special Voting Stock</B>

<P align="left" style="font-size: 10pt">Our board of directors has issued one share of preferred stock, designated as
special voting stock, par value $1.00 per share. The share of special voting
stock has been issued to Computershare Trust Company of Canada, as trustee,
under the voting and exchange trust agreement between us, Bowater Canadian
Holdings, Bowater Canada and this trustee. (In this discussion, we refer to
this trustee or any subsequent holder of the share of special voting stock as
the &#147;voting and exchange trustee.&#148;) The voting and exchange trustee is
entitled to cast a number of votes equal to the number of outstanding
exchangeable shares not owned by us or our affiliates as to which the voting
and exchange trustee has timely received voting instructions from the holders
of outstanding exchangeable shares in accordance with the voting and exchange
trust agreement. The holders of our common stock and the voting and exchange
trustee vote together as a single class on all matters.


<P align="left" style="font-size: 10pt">If we liquidate, dissolve or wind up our business, the voting and exchange
trustee will be entitled to receive, before any distributions to holders of the
shares of our common stock, $10.00 out of our assets that are available for
distribution to our shareholders. We do not pay dividends on the share of
special voting stock. We have no rights to redeem the share of special voting
stock, except that, if at any time no exchangeable shares are outstanding (not
counting shares owned by us or our affiliates), then we automatically will
redeem and cancel the share of special voting stock and pay $10.00 to the
former holder.



<P align="left" style="font-size: 10pt"><B>Preferred Stock That May Be Issued Under this Prospectus</B>

<P align="left" style="font-size: 10pt">The registration statement that includes this base prospectus registers one or
more additional series of our preferred stock that may be issued in the future.
This section summarizes the material terms of the preferred stock that we may
offer. The prospectus supplement relating to a particular series of preferred
stock will describe the specific terms of that series, which may be in addition
to or different from the general terms summarized in this section, except that
the prospectus supplement may not make material changes to the information in
this prospectus such that it fundamentally changes the nature of the offering
or the securities offered. The summaries in this section and the prospectus
supplement do not describe every aspect of the preferred stock. When evaluating
the preferred stock, you should also refer to all of the provisions of
Bowater&#146;s Restated Certificate of Incorporation, the Certificate of Designation
for the offered series of preferred stock, and the Delaware General Corporation
Law. The Certificate of Designation for any series of preferred stock will be
filed as an exhibit in a post-effective amendment to, or incorporated from a
subsequent SEC filing by reference in, the registration statement of which this
prospectus is a part.


<P align="left" style="font-size: 10pt">The prospectus supplement relating to a particular series of preferred stock
will describe the specific terms of the series, including:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the designation, ranking, stated value and liquidation and dividend
preference of the series, the number of shares comprising the series
and the number of shares offered;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the initial public offering price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the dividend rate (or method of calculation), the dividend periods,
the dates on which dividends will be payable, and whether dividends
will be cumulative or noncumulative;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any redemption or sinking fund provisions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any conversion or exchange provisions and the various factors
considered in determining the conversion price, if applicable;</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">-7-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the procedures for any auction or remarketing of the series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether interests in the shares of the series will be represented by depositary shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the voting powers, if any, of the shares of the series, in addition
to or in substitution of those listed below; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any additional dividend, liquidation, redemption, sinking fund and
other rights, preferences, privileges, limitations and restrictions of
the series.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">As described under &#147;Description of Depositary Shares,&#148; Bowater may elect to
offer depositary shares evidenced by depositary receipts, each representing a
fraction (to be specified in the prospectus supplement) of a share of a
particular series of preferred stock, rather than offering full shares of that
series of preferred stock.


<P align="left" style="font-size: 10pt">Unless provided otherwise in any prospectus supplement, the preferred stock of
each series will rank equally with the preferred stock of every other series.
The preferred stock will rank senior to the common stock in priority of payment
of dividends and in the distribution of assets in any liquidation, dissolution,
or winding up of Bowater, to the extent of the preferential amounts to which
the preferred stock of the applicable series is entitled.


<P align="left" style="font-size: 10pt">Once issued, the shares of preferred stock will be fully paid and
nonassessable. Holders of preferred stock will have no preemptive rights.
Shares of preferred stock redeemed, converted or otherwise reacquired by
Bowater will resume the status of authorized and unissued shares of preferred
stock, undesignated as to series, and may be reissued later.



<P align="left" style="font-size: 10pt"><B>Dividends and Distributions</B>

<P align="left" style="font-size: 10pt">The holders of preferred stock of each series will be entitled to receive
preferential dividends out of funds legally available for dividend payment,
when and if our board of directors declares dividends. Holders will receive
declared dividends (in cash or in kind, as applicable for the series) payable
at the rate, from the date, and on the specified dividend payment dates and, if
cumulative, cumulative from the date stated in the prospectus supplement
relating to that series. Unless otherwise specified in the applicable
prospectus supplement, any arrearages in dividends on the preferred stock will
not bear interest.


<P align="left" style="font-size: 10pt">The provisions described below will apply unless otherwise specified in the
applicable prospectus supplement. A series of preferred stock may limit our
ability to pay dividends or distribute assets with respect to any stock that
ranks equal or junior to that series as to the payment of dividends and the
distribution of assets upon liquidation (which we call &#147;parity preferred stock&#148;
and &#147;junior stock&#148;, respectively). As long as any shares of a series of offered
preferred stock are outstanding, we may not pay or declare dividends or make
distributions (other than dividends or distributions payable in shares of
junior stock or in warrants, rights or options exercisable for or convertible
into shares of junior stock, together with cash in lieu of fractional shares)
on any parity preferred stock or junior stock, unless:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>there are no arrearages in dividends on any preferred stock ranking
senior to that series of preferred stock with respect to the payment of
dividends and distribution of assets upon liquidation (which we call
&#147;senior preferred stock&#148;) for any past dividend period, and dividends
in full for the current dividend period have been paid or declared on
all senior preferred stock, in each case to the extent such dividends
are cumulative;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we have paid or set aside any amounts required at that time to be
paid or set aside for any purchase, retirement and sinking funds for
any senior preferred stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are not in default on any obligations to redeem any of the
senior preferred stock.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">We refer to the conditions set forth above collectively as the &#147;seniority
conditions.&#148; In addition, unless these conditions are met and for so long as
any shares of a series of offered preferred stock are




<P align="center" style="font-size: 10pt">-8-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">outstanding, neither we nor any of our subsidiaries may purchase, redeem or
otherwise acquire any shares of any junior stock (except in connection with a
reclassification or exchange of any junior stock through the issuance of other
junior stock (and cash in lieu of any fractional shares), or the purchase,
redemption or other acquisition of any junior stock with any junior stock (and
cash in lieu of any fractional shares)) nor may we make any sinking fund
payment for the purchase, redemption or acquisition of any junior stock.


<P align="left" style="font-size: 10pt">If the seniority conditions are met, our board of directors may declare and pay
dividends or make distributions on the shares of, acquire, redeem or make
sinking fund payments for the acquisition of, any junior stock.


<P align="left" style="font-size: 10pt">In addition, as long as any shares of a series of offered preferred stock are
outstanding, if any conditions similar to the seniority conditions are not met
with respect to a class of parity preferred stock, which we refer to as &#147;parity
conditions,&#148; then any dividends paid or declared (other than dividends or
distributions payable in junior stock and cash in lieu of fractional shares)
will be shared pro rata by the holders of that series and of all series of
parity preferred stock. In the pro rata sharing, the amounts of any dividends
declared and paid per share of preferred stock of that series and each other
share of parity preferred stock will in all cases bear to each other the same
ratio that their respective arrearages of any accrued and unpaid dividends
(including any accumulation with respect to unpaid dividends for prior periods
if dividends with respect to such series are cumulative) per share of preferred
stock of that series and the other share of parity preferred stock bear to each
other.


<P align="left" style="font-size: 10pt">The provisions of the preceding paragraphs will not prevent us from applying
any monies previously deposited in any sinking fund with respect to any
preferred stock in compliance with the provisions of the sinking fund to the
purchase or redemption of that preferred stock in accordance with the terms of
the sinking fund, regardless of whether at the time of application we have paid
or declared and set aside for payment full cumulative dividends upon shares of
the offered preferred stock outstanding on the last dividend payment date for
any series of offered preferred stock. The provisions of the preceding
paragraphs also do not restrict the ability of a holder of any junior stock,
parity preferred stock or senior preferred stock to convert those securities
into or exchange those securities for stock on par with or junior to such
stock.



<P align="left" style="font-size: 10pt"><B>Liquidation</B>

<P align="left" style="font-size: 10pt">If any voluntary or involuntary liquidation, dissolution, or winding up of
Bowater occurs, the holders of preferred stock of each series will be entitled
to receive the full preferential amount set forth in the prospectus supplement
relating to that series, including any arrearages in dividends on that series
to the date fixed for the payment in liquidation, before any distribution will
be made to the holders of any junior stock and to share such payments pro rata
with holders of any series of parity preferred stock. After the holders of the
preferred stock are paid in full, the remaining assets of Bowater will then be
distributed exclusively among the holders of any junior stock, according to
their respective interests.


<P align="left" style="font-size: 10pt">If Bowater does not have sufficient assets to pay the full preferential amounts
due to the preferred stock holders of any series, then the assets available for
distribution to preferred stock holders of that series and any series of parity
preferred stock will be distributed pro rata to those holders in proportion to
the full preferential amounts payable on the respective shares.



<P align="left" style="font-size: 10pt"><B>Merger or Sale of Assets</B>

<P align="left" style="font-size: 10pt">A consolidation or merger of Bowater with or into one or more other
corporations or a sale of all or substantially all of the assets of Bowater
will not be deemed to be a voluntary or involuntary liquidation, dissolution,
or winding up of Bowater for purposes of the rights of the preferred stock.




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<P align="left" style="font-size: 10pt"><B>Redemption</B>


<P align="left" style="font-size: 10pt">The prospectus supplement for the preferred stock of any series will state
redemption rights and redemption price(s) for that series.


<P align="left" style="font-size: 10pt">Unless the prospectus supplement states otherwise:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notice of redemption will be mailed to record holders at least 30
days but not more than 90&nbsp;days prior to the date fixed for redemption;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in case of a partial redemption, the shares to be redeemed will be
selected pro rata, by lot or in such other manner as our board of
directors may determine.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If we give notice of redemption, then on and after the redemption date,
dividends on the shares called for redemption will cease to accumulate, unless
we default in the payment of the redemption price. As of the redemption date,
holders of the preferred stock called for redemption will have no further
rights except the right to receive the redemption price when they surrender
their certificates for redemption.


<P align="left" style="font-size: 10pt">Shares of preferred stock of any series may also be subject to redemption, in
the manner described above, through operation of any sinking or retirement fund
created for that series, at the redemption prices and under the terms and
provisions described in the prospectus supplement.


<P align="left" style="font-size: 10pt">We are not required to register a transfer of any share of a series of
preferred stock within 15&nbsp;days preceding a selection for redemption of shares
of that series or to register a transfer of any share that has been selected
for redemption.


<P align="left" style="font-size: 10pt">If we are obligated to retire shares of one or more series of preferred stock
and if we do not pay the obligation in full, the portion of shares of each
series that are retired will be proportionate to the ratio of the retirement
payment actually made to the respective amounts that would have been payable
for each series if we had paid in full.



<P align="left" style="font-size: 10pt"><B>Voting Rights</B>

<P align="left" style="font-size: 10pt">The holders of the shares of each series of preferred stock will be entitled to
the voting powers and rights, if any, described in this section or as otherwise
provided in any prospectus supplement, as well as any other rights required by
law. If depositary shares are issued, those shares will entitle the holders to
the fractional vote specified in the prospectus supplement. The holders of
preferred stock will be entitled to vote as a class only to the extent
described in this section, as otherwise provided in any prospectus supplement
or as required by the Delaware General Corporation Law.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Holders&#146; Approval Required</I></B>

<P align="left" style="font-size: 10pt">We will take the actions described below only with the approval of the
percentage of holders specified in the applicable prospectus supplements of all
the outstanding shares of all series of preferred stock adversely affected by
the action, or if we provide for the redemption of all outstanding shares of
preferred stock at or before the time when the amendment, issuance, or other
event described below is to occur or take effect. Unless otherwise specified
in the applicable prospectus supplement, all classes of preferred stock
similarly affected will vote as a single class, and any class unequally
affected will vote separately.



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amend, alter, or repeal any of the provisions of our Restated
Certificate of Incorporation or Bylaws to adversely affect the powers,
preferences, or rights of the holders of one or more series of
preferred stock or to reduce the time for any notice to which only the
holders of one or more series of preferred stock may be entitled. An
amendment of the Restated Certificate of Incorporation to authorize or
create, or to increase the authorized amount of common stock or other
junior stock or any class ranking on a parity with one or more series
of preferred stock as to the payment of dividends or the distribution
of assets on liquidation will not be deemed to</TD>
</TR>

</TABLE>



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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">adversely affect the powers, preferences, or rights of the holders of
those series of preferred stock;


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorize or create, or increase the authorized amount of, any
stock of any class, or any security convertible into stock of any
class, ranking prior to one or more series of preferred stock as to
payment of dividends or the distribution of assets upon liquidation; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>merge with or consolidate into any other corporation, unless each
holder of the applicable series of preferred stock at the time of the
merger or consolidation receives or continues to hold an equivalent
number of shares in the resulting corporation, with substantially the
same rights and preferences as the series of preferred stock held prior
to the merger or consolidation.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Unless the holders of at least the percentage specified in the applicable
prospectus supplement of the outstanding shares of any series of preferred
stock approve, we will not amend, alter, or repeal any of the provisions of our
Restated Certificate of Incorporation or Bylaws, or the provisions of the
series, so as to affect adversely the powers, preferences, or rights of the
holders of the preferred stock of that series in a manner not equally
applicable to all series of parity preferred stock.


<P align="left" style="font-size: 10pt">Unless the holders of a majority of the outstanding shares of preferred stock,
voting as a single class, approve, Bowater will not increase the authorized
amount of the preferred stock. Unless the holders of a majority of the
outstanding shares of any series of preferred stock and any parity preferred
stock with respect to that series, voting as a single class, approve, Bowater
will not: (1)&nbsp;create any other class of stock ranking on parity with those
series of preferred stock, either as to payment of dividends or the
distribution of assets upon liquidation; or (2)&nbsp;increase the authorized number
of shares of any other class of stock or other security ranking equally with
those series of preferred stock.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Holders&#146; Approval Not Required</I></B>

<P align="left" style="font-size: 10pt">No approval by the holders of the preferred stock will be required if, before
the amendment, issuance, or other event described above occurs or takes effect,
the redemption of all shares of preferred stock that would otherwise have to
consent to the action is provided for.



<P align="left" style="font-size: 10pt"><B>Potential Conflicts</B>

<P align="left" style="font-size: 10pt">If the terms of a series of offered preferred stock differ from the terms of
other series of preferred stock (as to conversion rights, ranking, voting,
redemption or sinking fund provisions, or other material terms), the interests
of the holders of the various series may conflict with one another.



<P align="left" style="font-size: 10pt"><B>Conversion or Exchange Rights</B>

<P align="left" style="font-size: 10pt">The prospectus supplement relating to a series of preferred stock that is
convertible or exchangeable will state whether the shares are convertible or
exchangeable into common stock, another series of preferred stock, or debt
securities, and the terms on which shares of that series are convertible or
exchangeable.



<P align="left" style="font-size: 10pt"><B>CERTAIN CERTIFICATE, BYLAW AND CONTRACT PROVISIONS</B>

<P align="left" style="font-size: 10pt">Certain provisions of our Restated Certificate of Incorporation or our Bylaws
may have the effect of delaying, deferring or preventing a change in control of
Bowater. These provisions include:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>those regarding a classified board of directors and providing that
directors may only be removed for cause by a supermajority vote;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the supermajority shareholder or special director voting
requirements for approval of certain business combinations and for
filling vacancies on the board of directors under certain
circumstances;</TD>
</TR>

</TABLE>



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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the requirement that the shareholders may
act only through a shareholders&#146; meeting, coupled with the provision
that only the board of directors or certain executive officers can call
a special meeting of the shareholders;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the requirements under the Bylaws for submitting proposals at
shareholder meetings and for nominating candidates for director;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of the board of directors to issue preferred stock,
which may be issued serially without prior approval of the shareholders
and which may have various voting rights designated by the board of
directors, potentially including a separate right to approve a merger
or sale of substantially all of our assets; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the supermajority voting requirements to amend certain provisions
of the certificate or, in certain circumstances, various provisions of
the Bylaws.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Certain provisions in our employment contracts, change-in-control agreements,
stock option plans, severance pay plans, and qualified and nonqualified benefit
plans, and certain provisions in our credit agreements and in the indentures
relating to our debt securities, may also have the effect of inhibiting a
change in control of Bowater.



<P align="left" style="font-size: 10pt"><B>ANTI-TAKEOVER PROVISIONS OF DELAWARE LAW</B>

<P align="left" style="font-size: 10pt">We are subject to the provisions of Section&nbsp;203 of the Delaware General
Corporation Law. In general, this statute prohibits a Delaware corporation
from engaging in a business combination with any interested stockholder for a
period of three years following the time that the stockholder became an
interested stockholder, unless (1)&nbsp;prior to that time, the board of directors
of the corporation approved either the business combination or the transaction
that resulted in the stockholder becoming an interested stockholder; or (2)
upon consummation of the transaction that resulted in the stockholder becoming
an interested stockholder, the interested stockholder owned at least 85% of the
voting stock of the corporation outstanding at the time the transaction
commenced, excluding for purposes of determining the outstanding voting stock
(but not the outstanding voting stock owned by the interested stockholders)
those shares owned (i)&nbsp;by persons who are both directors and officers and (ii)
employee stock plans in which employee participants do not have the right to
determine confidentially whether shares held subject to the plan will be
tendered in a tender or exchange offer; or (3)&nbsp;at or subsequent to that time,
the business combination is approved by the board of directors and authorized
at an annual or special meeting of stockholders (and not by written consent) by
the affirmative vote of at least two-thirds of the outstanding voting stock
that is not owned by the interested stockholder.


<P align="left" style="font-size: 10pt">Generally, a &#147;business combination&#148; includes a merger, asset or stock sale, or
other transaction resulting in a significant financial benefit to the
stockholders. An &#147;interested stockholder&#148; is a person who, together with
affiliates and associates, (i)&nbsp;owns 15% or more of the corporation&#146;s voting
stock or (ii)&nbsp;is an affiliate or associate of the corporation and was the owner
of 15% of more of the corporation&#146;s outstanding voting stock at any time within
the three year period prior to the date the determination is made as to whether
the person is an interested stockholder.


<DIV align="left">
<A name="111"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of Depositary Shares</B>

<P align="left" style="font-size: 10pt">We may issue depositary shares independently or together with any other
securities offered by any prospectus supplement. The following summary of
certain provisions of the deposit agreement and of the depositary shares and
depositary receipts is not complete and is subject to, and qualified in its
entirety by reference to, the form of deposit agreement and form of depositary
receipts relating to each series of the preferred stock. A copy of the form of
deposit agreement, including the form of depositary receipt, will be filed as
an exhibit to a post-effective amendment to, or incorporated from a subsequent
filing by reference into, the registration statement of which this prospectus
is a part.



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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">The applicable prospectus supplement may also state that any of the terms set
forth in this prospectus are inapplicable to securities being offered or
include additional or different terms from the general terms summarized in this
section; except that the prospectus supplement may not make material changes to
the information in this prospectus such that it fundamentally changes the
nature of the offering or the securities offered.



<P align="left" style="font-size: 10pt"><B>GENERAL</B>

<P align="left" style="font-size: 10pt">We may, at our option, elect to offer fractional shares of preferred stock,
rather than full shares of preferred stock. In the event we exercise this
option, we will issue receipts for depositary shares, each of which will
represent a fraction, to be specified in the applicable prospectus supplement,
of a share of a particular series of preferred stock. The shares of any series
of the preferred stock underlying the depositary shares will be deposited under
a separate deposit agreement between us and a bank or trust company selected by
us as the depositary. The prospectus supplement relating to a series of
depositary shares will set forth the name and address of the depositary.
Subject to the terms of the deposit agreement, each owner of a depositary share
will be entitled, in proportion to the applicable interest in the number of
shares of preferred stock underlying such depositary share, to all the rights
and preferences of the preferred stock underlying such depositary share,
including dividend, voting, redemption, conversion, exchange and liquidation
rights.


<P align="left" style="font-size: 10pt">The depositary shares may be evidenced by depositary receipts issued pursuant
to the deposit agreement, each of which will represent the applicable interest
in a number of shares of a particular series of the preferred stock described
in the applicable prospectus supplement.


<P align="left" style="font-size: 10pt">Unless otherwise specified in the prospectus supplement, a holder of depositary
shares will not be entitled to receive the shares (or fractions of a share) of
preferred stock underlying the depositary shares.



<P align="left" style="font-size: 10pt"><B>DIVIDENDS AND OTHER DISTRIBUTIONS</B>

<P align="left" style="font-size: 10pt">The depositary will distribute all cash dividends or other cash distributions
received in respect of the preferred stock underlying the depositary shares to
the record holders of depositary shares representing such preferred stock in
proportion to the numbers of such depositary shares owned by such holders on
the relevant record date.


<P align="left" style="font-size: 10pt">In the event of a distribution other than in cash on the preferred stock
underlying the depositary shares, the depositary will distribute property
received by it to the record holders of depositary shares entitled thereto in
proportion, insofar as practicable, to the number of depositary shares owned by
such holders, unless the depositary determines that it is not feasible to make
such a distribution, in which case the depositary may, with our approval, adopt
the methods it deems equitable and practicable to effect the distribution,
including sale of such property and distribution of the net proceeds from the
sale to the relevant holders.


<P align="left" style="font-size: 10pt">The deposit agreement will also contain provisions relating to the manner in
which any subscription or similar rights offered by us to holders of preferred
stock will be made available to holders of depositary shares.



<P align="left" style="font-size: 10pt"><B>CONVERSION AND EXCHANGE</B>

<P align="left" style="font-size: 10pt">If any series of preferred stock underlying the depositary shares is subject to
provisions relating to its conversion or exchange as set forth in the
applicable prospectus supplement, each record holder of depositary shares will
have the right or obligation to convert or exchange the depositary shares
pursuant to those terms.



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<P align="left" style="font-size: 10pt"><B>REDEMPTION OF DEPOSITARY SHARES</B>

<P align="left" style="font-size: 10pt">If preferred stock underlying the depositary shares is subject to redemption,
the depositary shares will be redeemed from the proceeds received by the
depositary resulting from the redemption, in whole or in part, of the preferred
stock held by the depositary. The redemption price per depositary share will be
equal to the aggregate redemption price payable with respect to the fraction of
a share of preferred stock underlying the depositary shares. Whenever we redeem
preferred stock from the depositary, the depositary will redeem as of the same
redemption date a proportionate number of depositary shares representing the
shares of preferred stock that were redeemed. If less than all the depositary
shares are to be redeemed, the depositary shares to be redeemed will be
selected by lot or pro rata as we determine.


<P align="left" style="font-size: 10pt">After the date fixed for redemption, the depositary shares so called for
redemption will no longer be deemed to be outstanding and all rights of the
holders of the depositary shares will cease, except the right to receive the
redemption price payable upon the redemption. Any funds deposited by us with
the depositary for any depositary shares that the holders fail to redeem will,
subject to applicable escheat laws, be returned to us after a period of two
years from the date the funds were deposited.



<P align="left" style="font-size: 10pt"><B>VOTING</B>

<P align="left" style="font-size: 10pt">Upon receipt of notice of any meeting or action in lieu of any meeting at which
the holders of any shares of preferred stock underlying the depositary shares
are entitled to vote, the depositary will mail the information contained in the
notice to the record holders of the depositary shares relating to the
underlying preferred stock. Each record holder of depositary shares on the
record date (which will be the same date as the record date for the preferred
stock) will be entitled to instruct the depositary as to the exercise of the
voting rights pertaining to the number of shares of preferred stock underlying
the holder&#146;s depositary shares. The depositary will endeavor, insofar as
practicable, to vote the number of shares of preferred stock underlying such
depositary shares in accordance with those instructions, and we will agree to
take all actions that the depositary reasonably deems necessary in order to
enable it to do so.



<P align="left" style="font-size: 10pt"><B>AMENDMENT OF THE DEPOSIT AGREEMENT</B>

<P align="left" style="font-size: 10pt">The form of depositary receipt evidencing the depositary shares and any
provision of the deposit agreement may at any time be amended by agreement
between us and the depositary; provided, however, that any amendment that
materially and adversely alters the rights of the existing holders of
depositary shares will not be effective unless that amendment has been approved
by at least a majority of the depositary shares then outstanding.



<P align="left" style="font-size: 10pt"><B>CHARGES OF DEPOSITARY</B>

<P align="left" style="font-size: 10pt">We will pay all transfer and other taxes and governmental charges that arise
solely from the existence of the depositary arrangements. We will pay charges
of the depositary in connection with the initial deposit of the preferred stock
and any exchange or redemption of the preferred stock. Holders of depositary
shares will pay all other transfer and other taxes and governmental charges,
and, in addition, such other charges as are expressly provided in the deposit
agreement to be for their accounts.



<P align="left" style="font-size: 10pt"><B>MISCELLANEOUS</B>

<P align="left" style="font-size: 10pt">We, or at our option, the depositary, will forward or otherwise make available
to the holders of depositary shares all reports and communications from us that
we are required to furnish to the holders of preferred stock underlying the
depositary shares.


<P align="left" style="font-size: 10pt">Neither the depositary nor we will be liable if either of us is prevented or
delayed by law or any circumstances beyond our control in performing our
obligations under the deposit agreement. Our obligations and those of the
depositary under the deposit agreement will be limited to performance in good
faith of our duties under it, and we and the depositary will not be obligated
to prosecute or defend



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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">any legal proceeding in respect of any depositary share or preferred stock
unless satisfactory indemnity has been furnished to us. We and the depositary
may rely upon written advice of counsel or accountants, or information provided
by persons presenting preferred stock for deposit, holders of depositary shares
or other persons believed to be competent and on documents believed to be
genuine.



<P align="left" style="font-size: 10pt"><B>RESIGNATION AND REMOVAL OF DEPOSITARY; TERMINATION OF THE DEPOSIT AGREEMENT</B>

<P align="left" style="font-size: 10pt">The depositary may resign at any time by delivering to us notice of its
election to do so, and we may at any time remove the depositary, any such
resignation or removal to take effect upon the appointment of a successor
depositary and its acceptance of such appointment. We will appoint a successor
depositary within 60&nbsp;days after delivery of the notice of resignation or
removal. The deposit agreement may be terminated at our direction or by the
depositary if a successor depositary has not been appointed within 90&nbsp;days
after the depositary delivered to us written notice of its election to resign.
Upon termination of the deposit agreement, the depositary will discontinue the
transfer of depositary receipts, will suspend the distribution of dividends to
the holders of depositary shares, and will not give any further notices (other
than notice of the termination) or perform any further acts under the deposit
agreement, except that the depositary will continue to deliver preferred stock
certificates, together with any dividends and distributions and the net
proceeds of any sales of rights, preferences, privileges or other property in
exchange for depositary receipts surrendered. Upon our request, the depositary
will deliver all books, records, certificates evidencing preferred stock,
depositary receipts and other documents relating to the subject matter of the
depositary agreement to us.


<DIV align="left">
<A name="112"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of Warrants</B>

<P align="left" style="font-size: 10pt">We may issue warrants to purchase common stock, preferred stock, depositary
shares, debt securities, or any combination of these securities. The warrants
may be issued independently or together with any other securities and may be
attached to or separate from the other securities. Each series of warrants may
be issued under a separate warrant agreement to be entered into between Bowater
and a bank or trust company, as warrant agent.


<P align="left" style="font-size: 10pt">This section summarizes the material terms of the warrants that we may offer.
The prospectus supplement relating to a particular series of warrants will
describe the specific terms of the series, which may be in addition to or
different from the general terms summarized in this section, except that the
prospectus supplement may not make material changes to the information in this
prospectus such that it fundamentally changes the nature of the offering or the
securities offered. The summaries in this section and the prospectus supplement
do not describe every aspect of the warrants. When evaluating the warrants, you
should also refer to all the provisions of the warrant agreement, if any, the
certificates representing the warrant, and the specific descriptions in the
prospectus supplement. The forms of the warrant agreement, if any, and the
warrant certificates will be filed as exhibits to a post-effective amendment
to, or incorporated from a subsequent filing by reference into, the
registration statement of which this prospectus is a part.


<P align="left" style="font-size: 10pt">The prospectus supplement relating to a series of warrants will describe the
specific terms of the warrants including the following:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the title of the warrants;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate number of the warrants;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price or prices at which the warrants will be issued and the
currency in which the price for the warrants may be paid;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the designation and terms of the securities purchasable upon the
exercise of the warrants;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">-15-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price at which and the currency in which the securities
purchasable upon exercise of the warrants may be purchased and the
various factors considered in determining that price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the dates on which the right to exercise the warrants will commence
and expire and whether the exercise of warrants will be at the option
of holders, at our option, or automatic;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the warrants are exercisable by payment of cash, surrender
of other securities, or both;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provisions for changes to or adjustments in the exercise price of
the warrants;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the minimum or maximum amount of the warrants that
may be exercised at any one time;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the designation and terms of the other securities
with which the warrants are issued and the number of the warrants
issued with each such other security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the date on and after which the warrants and the
related other securities will be separately transferable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the warrants will be issued in registered form or bearer form;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information with respect to book-entry procedures, if any;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, a discussion of material U.S. federal income tax considerations; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other terms of the warrants, including terms, procedures, and
limitations relating to the exchange or exercise of the warrants.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Warrant certificates will be exchangeable for new warrant certificates of
different denominations, and warrants may be exercised, at the corporate trust
office of the warrant agent, if any, or any other office indicated in the
prospectus supplement. Until holders of warrants to purchase debt securities
exercise their warrants to purchase the debt securities, they will not be
entitled to payments of principal, premium, or interest on the debt securities.
Until holders of warrants to purchase common or preferred stock exercise their
warrants to purchase the stock, they will not be entitled to vote the stock or
to receive distributions, if any, with respect to the stock.


<P align="left" style="font-size: 10pt">Holders may exercise warrants on the terms described in the prospectus
supplement relating to those warrants. Once the payment and the properly
completed and executed warrant certificate are received at the corporate trust
office of the warrant agent, if any, or any other office indicated in the
prospectus supplement, we will, as soon as practicable, forward the securities.
If the holder exercises less than all of the warrants represented by the
warrant certificate, we will also issue a new warrant certificate for the
remaining warrants. Warrants may be designated &#147;options&#148; or &#147;rights&#148; as well
as &#147;warrants.&#148;


<DIV align="left">
<A name="113"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of Stock Purchase Contracts and Stock Purchase Units</B>

<P align="left" style="font-size: 10pt">We may issue stock purchase contracts representing contracts obligating holders
to purchase from us, and us to sell to the holders, a specified or varying
number of shares of our common stock, preferred stock and/or depositary shares
at a future date or dates. Alternatively, the stock purchase contracts may
obligate us to purchase from holders, and obligate holders to sell to us, a
specified or varying number of shares of common stock, preferred stock and/or
depositary shares. The price per share and number of shares of our common
stock, preferred stock and/or depositary shares may be fixed at the time the
stock purchase contracts are entered into or may be determined by reference to
a specific formula set forth in the stock purchase contracts. The stock
purchase contracts may be entered into separately or as a part of a stock
purchase unit that consists of a stock purchase contract, together with other
securities (including without limitation shares of our common or preferred
stock, our depositary shares, our warrants, our debt



<P align="center" style="font-size: 10pt">-16-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">securities, trust preferred securities issued by either trust, debt obligations
of third parties (including U.S. treasury securities), any other security
described in the applicable prospectus supplement and any combination of
these). The stock purchase contracts may require us to make periodic payments
to the holders of the stock purchase units or vice-versa. These payments may be
unsecured or prefunded and may be paid on a current or on a deferred basis. The
stock purchase contracts may require holders to secure their obligations under
the contracts in a specified manner.


<P align="left" style="font-size: 10pt">The applicable prospectus supplement will describe the terms of any stock
purchase contract or stock purchase unit, will describe the specific terms of
the securities being offered and will contain a discussion of the material U.S.
federal income tax considerations applicable to the stock purchase contracts
and stock purchase units. The terms described in a prospectus supplement may
be in addition to or different from the general terms summarized in this
section, except that the prospectus supplement may not make material changes to
the information in this prospectus such that it fundamentally changes the
nature of the offering or the securities offered. The description in the
applicable prospectus supplement will not necessarily be complete, and
reference will be made to the stock purchase contracts, and, if applicable,
collateral or depositary arrangements, relating to the stock purchase contracts
or stock purchase units. The forms of these agreements will be filed as
exhibits to a post-effective amendment to, or incorporated from a subsequent
filing by reference into, the registration statement of which this prospectus
is a part.


<DIV align="left">
<A name="114"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of Debt Securities</B>

<P align="left" style="font-size: 10pt">We may issue, from time to time, debt securities directly to the public, as
part of a stock purchase unit, or in connection with the issuance of trust
preferred securities by a trust. We may also issue debt securities under the
indentures (defined below) upon the exercise, conversion or exchange of
preferred stock, warrants or other debt securities or upon the settlement of
stock purchase contracts. The debt securities offered by this prospectus and
any applicable prospectus supplement will be our unsecured obligations and will
be either senior, subordinated or junior subordinated debt. Senior debt will
be issued under a senior debt indenture, subordinated debt will be issued under
a subordinated debt indenture, and junior subordinated debt will be issued
under a junior subordinated debt indenture. These three indentures are
sometimes called in this prospectus individually an &#147;indenture&#148; and
collectively the &#147;indentures.&#148; Each indenture is subject to and governed by the
Trust Indenture Act, and forms of the indentures have been filed as exhibits to
the registration statement of which this prospectus is part.


<P align="left" style="font-size: 10pt">We have summarized the material provisions of the indentures and the debt
securities. You should read the more detailed provisions of the applicable
indenture, including the defined terms, for provisions that may be important to
you. You should also read the particular terms of a series of debt securities,
which will be described in more detail in an applicable prospectus supplement.
Copies of the indentures may be obtained from us or the applicable trustee.
Wherever defined terms of the applicable indenture are referred to, the
sections or defined terms are incorporated by reference into this prospectus.


<P align="left" style="font-size: 10pt">The statements made below relating to the debt securities and the indentures
are summaries of their material provisions and are subject to, and are
qualified by reference to, the provisions of the applicable indenture and any
applicable U.S. federal income tax considerations as well as any supplements to
the terms described below in the applicable prospectus supplement. The
applicable prospectus supplement may also state that any of the terms set forth
herein are inapplicable to the series of debt securities being offered, except
that the prospectus supplement may not make material changes to the information
in this prospectus such that it fundamentally changes the nature of the
offering or the securities offered.



<P align="left" style="font-size: 10pt"><B>GENERAL</B>

<P align="left" style="font-size: 10pt">The debt securities will be our unsecured obligations. Unless otherwise
specified in a prospectus supplement, the debt securities issued under the
senior debt indenture will rank equally with all of our other unsecured and
unsubordinated obligations. See the subsection entitled &#147;Ranking &#150; Senior
Debt



<P align="center" style="font-size: 10pt">-17-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Securities.&#148; The debt securities issued under the subordinated debt indenture
will be subordinate and junior in right of payment to all of our senior
indebtedness, and the debt securities issued under our junior subordinated
indenture will be subordinated and junior in right of payment to our senior and
subordinated indebtedness, in each case as more fully described in the
applicable indenture. See the subsection entitled &#147;Ranking &#150; Subordinated Debt
Securities and Junior Subordinated Debt Securities.&#148;


<P align="left" style="font-size: 10pt">The indentures do not limit the amount of debt securities that we may issue
under the indentures, nor do they limit us from incurring or issuing other
secured or unsecured debt, except as provided in the covenant restricting liens
described below in the subsection entitled &#147;Certain Covenants with Respect to
Senior Debt Securities &#150; Limitation on Liens&#148; and as otherwise provided in any
prospectus supplement.


<P align="left" style="font-size: 10pt">The specific terms of each series of debt securities will be set forth in the
applicable prospectus supplement, including the following, as applicable:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the title of the debt securities and whether the debt securities
are senior, subordinated or junior subordinated debt securities and,
if subordinated or junior subordinated debt securities, the applicable
subordination provisions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any limit on the aggregate principal amount of the debt securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the person entitled to receive interest payable on the debt
securities, if other than the registered holder of the debt securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price (expressed as a percentage of the principal amount
thereof) at which the debt securities will be issued;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date or dates on which the principal of the debt securities is
payable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rate or rates at which the debt securities will bear interest,
if any, the date or dates from which any interest will accrue, the
dates on which any interest will be payable and the related record
dates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the place or places where the principal of and any premium and
interest on the debt securities will be payable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the period or periods, if any, within which, the price or prices at
which, and the other terms and conditions upon which the debt
securities may be redeemed, as a whole or in part, at our option;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our obligation, if any, to redeem or purchase the debt securities
pursuant to any sinking fund or analogous provisions or at the option
of a holder of the debt securities, and the period or periods within
which, the price or prices at which and the other terms and conditions
upon which the debt securities will be redeemed or purchased, as a
whole or in part, pursuant to those obligations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms of any right or requirement to convert or exchange the
debt securities, either at our option, at the option of a holder of the
debt securities, or automatically or mandatorily, into or for shares of
our stock or other securities or property, including the period or
periods within which and the price or prices (including any
adjustments) at which and the other terms and conditions upon which any
debt securities may be converted or exchanged, in whole or in part;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which any debt securities are issuable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the amount of principal of or any premium or interest on
the debt securities may be determined with reference to an index or
formula and the manner in which those amounts will be determined;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">-18-
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if other than U.S. dollars, the currency or currencies in which the
principal of and any premium and interest on the debt securities are
payable, and the manner of determining the equivalent amount in U.S.
dollars;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the principal of or any premium or interest on the debt
securities are payable, at our election or the election of a holder of
debt securities, in one or more currencies or currency units other than
those in which the debt securities are stated to be payable, the period
or periods within which, and the terms and conditions upon which, that
election may be made and the amount so payable (or the manner of
determining that amount);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if other than the entire principal amount of the debt securities,
the portion of the principal amount of the debt securities that will be
payable upon acceleration of maturity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the principal amount payable at the stated maturity of the debt
securities will not be determinable as of any one or more dates prior
to the stated maturity, the amount that will be deemed to be the
principal amount of the debt securities as of that date, including the
principal amount of the debt securities that will be due and payable
upon any maturity other than the stated maturity or that will be deemed
to be outstanding as of any date prior to the stated maturity (or, in
any such case, the manner of determining the amount deemed to be the
principal amount);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicability, if any, of the defeasance and covenant
defeasance provisions of the applicable indenture to the debt
securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, that the debt securities are issuable in whole or in
part in global form, the identity of the respective depositaries for
any debt securities issued in global form, the form of any legend or
legends that will accompany any debt securities issued in global form
and any additional circumstances in which any debt security issued in
global form may be exchanged in whole or in part for debt securities
registered, and in which any transfer of such debt security in whole or
in part may be registered, in the name or names of persons other than
the related depositary;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any additions to or changes in the events of default that apply to
the debt securities and any change in the right of the trustee or a
holder of the debt securities to declare the principal amount of the
debt securities due and payable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any additions to or changes in our covenants that apply to the debt
securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater&#146;s right, if any, to defer payment of interest and the
maximum length of any deferral period; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other terms of the debt securities.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">We may issue debt securities as original issue discount securities, which are
securities (including zero-coupon securities) that are issued at a price
significantly lower than the amount payable upon their stated maturity. These
securities provide that upon redemption or acceleration of the stated maturity,
an amount less than the amount payable upon the stated maturity, determined in
accordance with the terms of the debt securities, will become due and payable.
Specific U.S. federal income tax considerations applicable to original issue
discount securities will be described in any applicable prospectus supplement.


<P align="left" style="font-size: 10pt">In addition, specific U.S. federal income tax or other considerations
applicable to any debt securities denominated other than in U.S. dollars, and
to any debt securities that provide for application of an index to determine
principal and interest, will be described in any applicable prospectus
supplement.


<P align="left" style="font-size: 10pt">We may, in certain circumstances, without notice to or consent of the holders
of the debt securities, issue additional debt securities having the same terms
and conditions as the debt securities issued under this prospectus and any
applicable prospectus supplement, so that such additional debt securities and
the debt securities offered under this prospectus and any applicable prospectus
supplement form a single series,



<P align="center" style="font-size: 10pt">-19-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">and references in this prospectus and any applicable prospectus supplement to
the debt securities will include, unless the context otherwise requires, any
further debt securities issued as described in this paragraph. We refer to such
issuance of additional debt securities as a further issue.


<P align="left" style="font-size: 10pt">Purchasers of debt securities after the date of any further issue will not be
able to differentiate between the debt securities sold as part of the further
issue and previously issued debt securities. If we were to issue debt
securities with a greater amount of original issue discount, persons that are
subject to U.S. federal income taxation that purchase debt securities after
such further issue may be required to accrue greater amounts of original issue
discount than they would otherwise have accrued with respect to the debt
securities. This may affect the price of outstanding debt securities as a
result of a further issue.


<P align="left" style="font-size: 10pt">Except as may be set forth under the subsections entitled &#147;Certain Covenants
with Respect to Senior Debt Securities&#148; and &#147;Mergers and Similar Events&#148; and in
the applicable prospectus supplement, the debt securities will not contain any
provisions that would limit our ability to incur additional indebtedness or
that would afford holders of debt securities protection from transactions
involving us or our subsidiaries, including a highly leveraged transaction or a
change in control. The applicable prospectus supplement will contain
information with respect to any additions to the events of default or covenants
described below, including any addition of a covenant or other provision
providing event risk or similar protection.



<P align="left" style="font-size: 10pt"><B>DENOMINATION, INTEREST, REGISTRATION AND TRANSFER</B>

<P align="left" style="font-size: 10pt">We will issue the debt securities of each series, without coupons, in
denominations of $1,000, or in such other currencies or denominations as may be
set forth in the applicable supplemental indenture or specified in, or pursuant
to, an authorizing resolution, if any, relating to such series of debt
securities.


<P align="left" style="font-size: 10pt">The principal of and interest, if any, on any series of debt securities will be
payable at the corporate trust office of the trustee, the address of which will
be stated in the applicable prospectus supplement. However, at our option,
interest payments may be made by check mailed to the address of the person
entitled to receive it as the address appears in the applicable register for
such debt securities.


<P align="left" style="font-size: 10pt">Subject to certain limitations imposed upon debt securities issued in
book-entry form, unless otherwise specified in the applicable prospectus
supplement the debt securities of any series:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be exchangeable for any authorized denomination of other debt
securities of the same series and of a like aggregate principal amount
and tenor upon surrender of such debt securities at the trustee&#146;s
corporate trust office or at the office of any registrar designated by
us for such purpose; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may be surrendered for registration of transfer or exchange at the
corporate trust office of the trustee or at the office of any registrar
designated by us for such purpose.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">No service charge will be made for any registration of transfer or exchange,
but we may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with certain transfers and exchanges,
and we may decline to permit the transfer or exchange until the applicable tax
or charge is paid. We may act as registrar and may change any registrar
without notice.



<P align="left" style="font-size: 10pt"><B>MATERIAL COVENANTS</B>

<P align="left" style="font-size: 10pt">The applicable prospectus supplement will describe any material covenants in
respect of a series of debt securities that are not described in or are
different from those in this prospectus.



<P align="left" style="font-size: 10pt"><B>RANKING</B>

<P align="left" style="font-size: 10pt">The majority of our assets are held, and the majority of our operations are
conducted, by subsidiaries. As a result, we depend heavily upon payments on
intercompany loans by our subsidiaries and other distributions or payments to
us by our subsidiaries to enable us to make payments on the debt securities.



<P align="center" style="font-size: 10pt">-20-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Our subsidiaries are separate legal entities that have no obligation to pay any
amounts due under any debt securities that we issue. We cannot assure you that
the amounts we receive from our subsidiaries will be sufficient to enable us to
service our obligations on any debt securities we may issue.


<P align="left" style="font-size: 10pt">In addition, none of our subsidiaries will guarantee our obligations under, or
have any obligation to pay any amounts due on, any debt securities that we
issue. As a result, any debt securities that we issue will be effectively
subordinated to all liabilities of our subsidiaries. Our rights and the rights
of our creditors, including the holders of debt to be issued under this
prospectus, to participate in the assets of any of our subsidiaries upon their
liquidation or recapitalization will generally be subject to the prior claims
of those subsidiaries&#146; creditors.



<P align="left" style="font-size: 10pt"><B>Senior Debt Securities</B>

<P align="left" style="font-size: 10pt">The senior debt securities will be our unsecured unsubordinated obligations and will:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rank equal in right of payment with all our other unsecured and unsubordinated indebtedness;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be effectively subordinated in right of payment to all our secured
indebtedness to the extent of the value of the assets securing such
indebtedness; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be effectively subordinated to all of our subsidiaries&#146; obligations
and liabilities and all mandatorily redeemable preferred stock of our
subsidiaries to the extent of their assets.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Except as described in the subsection entitled &#147;Certain Covenants with Respect
to Senior Debt Securities&#148; or as otherwise specified in an authorizing
resolution and/or supplemental indenture, if any, relating to a series of
senior debt securities to be issued, there are no limitations in the senior
debt indenture on the amount of additional indebtedness that may rank equal
with the senior debt securities or on the amount of indebtedness, secured or
otherwise, that may be incurred or preferred stock that may be issued by any of
our subsidiaries.



<P align="left" style="font-size: 10pt"><B>Subordinated Debt Securities and Junior Subordinated Debt Securities</B>

<P align="left" style="font-size: 10pt">Under the subordinated debt indenture and junior subordinated debt indenture,
payment of the principal, interest and any premium on any debt securities will
generally be subordinated in right of payment to the prior payment in full of
all of our senior debt, including any senior debt securities issued under the
senior debt indenture. In addition, under the junior subordinated debt
indenture, payment rights will be further subordinated to those of subordinated
debt securities. The prospectus supplement relating to any series of
subordinated debt securities or junior subordinated debt securities will
summarize the subordination provisions applicable to that series, including:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicability and effect of such provisions upon any payment or
distribution of our assets to creditors upon any liquidation,
bankruptcy, insolvency or similar proceedings;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicability and effect of such provisions in the event of
specified defaults with respect to debt that is senior to that series,
including the circumstances under which and the periods in which we
will be prohibited from making payments on the applicable subordinated
or junior subordinated debt securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any forbearance period during which holders of the debt securities
of that series would be prohibited from commencing any action or
proceeding to enforce their rights under the terms of the debt
securities of that series or the applicable indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our right, if any, to defer payment of interest and the maximum
length of any deferral period; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the definition of senior debt applicable to the subordinated or
junior subordinated debt securities of that series.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">-21-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Any failure to
make any required payment on any series of subordinated or junior subordinated
debt securities due to compliance with the subordination provisions for that
series will still constitute an event of default for that series. Except as
otherwise specified in the authorizing resolution and/or supplemental
indenture, if any, there are no limitations in the subordinated and junior
subordinated indentures on the amount of additional indebtedness that may rank
equal with the subordinated or junior subordinated debt securities or on the
amount of indebtedness, secured or otherwise, that may be incurred or preferred
stock that may be issued by any of our subsidiaries.



<P align="left" style="font-size: 10pt"><B>CERTAIN COVENANTS WITH RESPECT TO SENIOR DEBT SECURITIES</B>

<P align="left" style="font-size: 10pt">Unless otherwise indicated in the applicable prospectus supplement, any series
of our senior debt securities will include the restrictive covenant provisions
described below.


<P align="left" style="font-size: 10pt">We define some of the capitalized terms we use in the next two subsections
below under the subsection entitled &#147;Definitions for Restrictive Covenants.&#148;



<P align="left" style="font-size: 10pt"><B>Limitation on Liens</B>

<P align="left" style="font-size: 10pt">Neither Bowater nor any Restricted Subsidiary may create, incur, assume or
suffer to exist any Lien upon any Principal Property, whether owned at the date
of the indenture or acquired later, to secure any Indebtedness, without
securing the applicable debt securities (together with, if Bowater so
determines, any Indebtedness of Bowater or any Restricted Subsidiary that is
not subordinate to such debt securities and any debt securities of any other
series then outstanding under the applicable indenture) by that Lien equally
and ratably with, or prior to, any and all other Indebtedness secured by it, so
long as that Indebtedness is so secured.


<P align="left" style="font-size: 10pt">The foregoing restriction will not apply to Indebtedness secured solely by:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens existing on the date of the applicable indenture (including
those securing any refinancing of debt underlying such liens);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens on any property existing at the time Bowater or a Restricted
Subsidiary acquires it, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens in favor of Bowater or any wholly-owned Restricted
Subsidiary;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens in favor of any governmental body to secure progress, advance
or other payments pursuant to any contract or provision of any statute;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens on property to secure all or part of the cost of acquiring,
substantially repairing or altering, constructing, developing or
substantially improving the property, or to secure all or part of such
property, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing obligations issued by a State, territory or
possession of the United States or the District of Columbia to finance
the acquisition or construction of property, and on which the interest
is not, in the opinion of tax counsel or in accordance with an Internal
Revenue Service ruling, includible in gross income by reason of Section
103(a) of the Internal Revenue Code of 1986, as amended; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any Lien referred to
in the foregoing clauses, subject to certain limitations.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Bowater and its Restricted Subsidiaries may create, incur, assume or suffer to
exist Liens securing any Indebtedness without equally and ratably securing the
debt securities issued under the applicable indenture, provided that the
aggregate amount of such Indebtedness and Attributable Debt with respect to
Sale and Lease-Back Transactions does not exceed 10% of Bowater&#146;s Consolidated
Net Tangible Assets.



<P align="center" style="font-size: 10pt">-22-
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Limitation on Sale and Lease-Back Transactions</B>

<P align="left" style="font-size: 10pt">Neither Bowater nor any Restricted Subsidiary may enter into any Sale and
Lease-Back Transactions with respect to any Principal Property unless the
aggregate amount of all Attributable Debt with respect to Sale and Lease-Back
Transactions plus the aggregate amount of Indebtedness secured by Liens
incurred without equally and ratably securing the applicable debt securities
pursuant to the subsection entitled &#147;Limitation on Liens&#148; above, would not
exceed 10% of Bowater&#146;s Consolidated Net Tangible Assets. The foregoing
restriction will not apply to, and there shall be excluded from Attributable
Debt in any computation described in this subsection or in the subsection
entitled &#147;Limitation on Liens&#148; with respect to Sale and Lease-Back Transactions
if:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the lease in such Sale and Lease-Back Transaction is for a period,
including renewal rights, of three years or less;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater or any Restricted Subsidiary, within 180&nbsp;days after the
Sale and Lease-Back Transaction, applies an amount not less than the
greater of the net proceeds of the Sale and Lease-Back Transaction or
the fair value of the Principal Property at the time of the Sale and
Lease-Back Transaction to (a)&nbsp;the prepayment or retirement of Funded
Debt of Bowater or any of its Restricted Subsidiaries, subject to
certain limitations, or (b)&nbsp;the purchase of other property that will
constitute Principal Property, subject to certain limitations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the lease in such Sale and Lease-Back Transaction secures or
relates to obligations issued by a State, territory or possession of
the United States or the District of Columbia to finance the
acquisition or construction of property, and on which the interest is
not, in the opinion of tax counsel or in accordance with an Internal
Revenue Service ruling, includible in gross income of the holder by
reason of Section 103(a) of the Internal Revenue Code of 1986, as
amended; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such Sale and Lease-Back Transaction is entered into between
Bowater and a wholly-owned Subsidiary or between wholly-owned
Subsidiaries.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Definitions for Restrictive Covenants</B>

<P align="left" style="font-size: 10pt">"<B><I>Attributable Debt</I></B>&#148; means, at the time any determination thereof is to be made,
with respect to any lease under which Bowater or any of its Restricted
Subsidiaries is liable, the total net amount of rent Bowater or its Restricted
Subsidiary must pay under such lease during its remaining term, using a
discount rate equal to the weighted average yield to maturity of the debt
securities. By &#147;net&#148; amount of rent we mean the rent payable by the lessee
after excluding amounts required to be paid on account of maintenance and
repairs, insurance, taxes, assessments, water rates and similar charges. In the
case of any lease which is terminable upon the payment of a penalty, such net
amount shall also include the amount of such penalty, but no rent shall be
considered as required to be paid under such lease subsequent to the first date
upon which it may be terminated.


<P align="left" style="font-size: 10pt">"<B><I>Consolidated Net Tangible Assets</I></B>&#148; means, on the date of any determination, the
aggregate amount of assets, less applicable reserves and other properly
deductible items, after deducting:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all current liabilities, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">all as set forth on the most recent quarterly balance sheet of Bowater and its
consolidated subsidiaries and computed in accordance with accounting principles
generally accepted in the United States.


<P align="left" style="font-size: 10pt">"<B><I>Funded Debt</I></B>&#148; means


<P align="left" style="font-size: 10pt">(1)&nbsp;all Indebtedness having a maturity of more than 12&nbsp;months from the date as
of which the determination is made or having a maturity of 12&nbsp;months or less
but by its terms being renewable or

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<P align="left" style="font-size: 10pt">extendible beyond 12&nbsp;months from such date at the option of the borrower
(excluding any amount thereof included in current liabilities); and


<P align="left" style="font-size: 10pt">(2)&nbsp;rental obligations payable more than 12&nbsp;months from such date under leases
which are capitalized in accordance with accounting principles generally
accepted in the United States (such rental obligations to be included as Funded
Debt at the amount so capitalized and to be included for the purposes of the
definition of Consolidated Net Tangible Assets both as an asset and as Funded
Debt at the amount so capitalized).


<P align="left" style="font-size: 10pt">"<B><I>Indebtedness</I></B>&#148; means, at any time, without duplication:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations for borrowed money,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations evidenced by bonds, debentures, notes or other similar instruments, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations in respect of any letters of credit supporting any
Indebtedness of others and guarantees of Indebtedness of others.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">"<B><I>Lien</I></B>&#148; means any mortgage, pledge, hypothecation, encumbrance, security
interest, statutory or other lien, or preference, priority or other security or
similar agreement or preferential arrangement of any kind or nature whatsoever,
including any conditional sale or other title retention agreement having
substantially the same economic effect as any of these.


<P align="left" style="font-size: 10pt">"<B><I>Principal Property</I></B>&#148; means


<P align="left" style="font-size: 10pt">(1)&nbsp;any mill, converting plant, manufacturing plant or other facility owned on
the date of the indenture or thereafter acquired by Bowater or any Restricted
Subsidiary that is located within the continental United States and the gross
book value (including related land and improvements thereon and all machinery
and equipment included therein without deduction of any depreciation reserves)
of which, on the date as of which the determination is being made, exceeds 1%
of Bowater&#146;s Consolidated Net Tangible Assets, and


<P align="left" style="font-size: 10pt">(2)&nbsp;Timberlands, in each case other than:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any property which, in the opinion of Bowater&#146;s board of directors
or a board committee as evidenced by a board or committee resolution,
is not of material importance to the business conducted by Bowater and
its Restricted Subsidiaries as an entirety,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a portion of any property which, in the opinion of Bowater&#146;s board
of directors or a board committee as evidenced by a board or committee
resolution, is not of material importance to the use or operation of
such property, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any oil, gas or other minerals or mineral rights.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">"<B><I>Realty Subsidiary</I></B>&#148; means a subsidiary engaged primarily in the development and
sale or financing of real property.


<P align="left" style="font-size: 10pt">"<B><I>Restricted Subsidiary</I></B>&#148; means a subsidiary of Bowater (1)&nbsp;substantially all the
property of which is located, or substantially all the business of which is
carried on, within the continental United States and (2)&nbsp;which owns a Principal
Property, but does not include a Realty Subsidiary.


<P align="left" style="font-size: 10pt">"<B><I>Sale and Lease-Back Transaction</I></B>&#148; means any arrangement whereby Bowater or one
of its Restricted Subsidiaries has sold or transferred, or will sell or
transfer, property to a third party and has or will take back a lease pursuant
to which the rental payments are calculated to amortize the purchase price of
the property substantially over the useful life of such property.


<P align="left" style="font-size: 10pt">"<B><I>Timberlands</I></B>&#148; means any real property of Bowater or any Restricted Subsidiary
located within the continental United States which contains (or upon completion
of a growth cycle then in process is expected to contain) standing timber of a
commercial quantity and of merchantable quality, excluding,

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<P align="left" style="font-size: 10pt">however, any such real property which at the time of determination is held
primarily for development or sale and not primarily for the production of any
lumber or other timber products.



<P align="left" style="font-size: 10pt"><B>MERGERS AND SIMILAR EVENTS</B>

<P align="left" style="font-size: 10pt">Bowater may not consolidate with or merge into any other person or convey,
transfer or lease its properties and assets substantially as an entirety to any
person, nor may it permit another entity to consolidate with or merge into
Bowater or convey, transfer or lease its properties and assets substantially as
an entirety to Bowater, unless:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if Bowater is not the principal survivor, the successor person is a
corporation, partnership or trust organized and validly existing under
the laws of the United States, any State or the District of Columbia;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor person expressly assumes our obligations on the
applicable debt securities and under the applicable indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after giving effect to the transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an
Event of Default, would occur and be continuing; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either Bowater or the successor person takes all necessary steps to
bring any secured Indebtedness into compliance with the limitation on
liens covenant.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>MODIFICATION AND WAIVER</B>

<P align="left" style="font-size: 10pt">Acting with the trustee, we may modify and amend the applicable indenture upon
receiving the consent of the holders of 50% of the principal amount of the
outstanding debt securities issued under the applicable indenture, taken
together. However, we may not, without the consent of each holder of the
applicable debt security:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the stated maturity of the principal or interest on the debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce any amounts due on the debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the amount of principal payable upon acceleration of the
maturity of the debt security following a default;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the place or currency of payment of the debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right of holders of the applicable debt security to sue for payment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage of holders of the applicable debt securities
whose consent is needed to modify or amend the applicable indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of subordinated or junior subordinated debt securities,
modify the subordination provisions of the applicable indenture in a
manner adverse to the holders of such securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage of holders of the applicable debt securities
whose consent is needed to waive compliance with certain provisions of
the applicable indenture or to waive certain defaults; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>modify any other aspect of the provisions dealing with modification
and waiver of the applicable indenture.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Acting with the trustee, we may also modify and amend the indentures without
the consent of holders of applicable debt securities in limited circumstances
such as clarifications and changes that would not adversely affect them.



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<P align="left" style="font-size: 10pt">Unless a supplemental indenture pertaining to a series of debt securities
specifies otherwise, the holders of 50% of the principal amount of the
outstanding debt securities may, before the time for compliance, waive our
compliance with the restrictive covenants in the applicable indenture. The
holders of 50% of the principal amount of the outstanding debt securities may,
on behalf of all such holders, waive any past default under the applicable
indenture, except:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default in the payment of principal of, premium, if any, or
interest on the applicable debt securities; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default in respect of a covenant or provision of the applicable
indenture that cannot be modified or amended without the consent of the
holder of each outstanding debt security under such indenture.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">We generally will be entitled to set any day as a record date for the purpose
of determining the holders of outstanding debt securities that are entitled to
vote or take other action under an indenture in accordance with applicable
laws. In limited circumstances, the trustee will be entitled to set a record
date for action by holders. If we or the trustee sets a record date for a vote
or other action to be taken by holders, that vote or action may be taken only
by persons who are holders of outstanding debt securities on the record date
and must be taken within 180&nbsp;days following the record date or a shorter period
that we may specify (or as the trustee may specify, if it sets the record
date). We may shorten or lengthen (but not beyond 180&nbsp;days) this period from
time to time.



<P align="left" style="font-size: 10pt"><B>DISCHARGE AND DEFEASANCE</B>


<P align="left" style="font-size: 10pt"><B>Full Defeasance</B>


<P align="left" style="font-size: 10pt">Unless otherwise specified in the prospectus supplement, if there is a change
in federal tax law after the issuance date of any debt securities, as described
below, we can legally release ourselves from any payment or other obligations
on the applicable debt securities, which we call full defeasance, if we put in
place the following other arrangements, subject to certain conditions, for
repayment of the debt securities:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We must deposit in trust for the benefit of the holders of the
applicable debt securities a combination of money and U.S. government
or U.S. government agency notes or bonds that will generate enough cash
to make interest, principal and any other payments on the applicable
debt securities on their various due dates.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There must be a change in current federal tax law or an Internal
Revenue Service ruling that lets us make the above deposit without
causing holders of the applicable debt securities to be taxed on the
applicable debt securities any differently than if we did not make the
deposit and instead repaid the securities ourselves.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We must deliver to the trustee a legal opinion of our counsel
confirming the tax law change described above.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If we ever did accomplish full defeasance with respect to a series of debt
securities, as described above, the holders would have to rely solely on the
trust deposit for repayment on the debt securities being defeased. Holders
could not look to us for repayment in the unlikely event of any shortfall.
Conversely, the trust deposit would most likely be protected from claims of our
lenders and other creditors if we ever became bankrupt or insolvent.



<P align="left" style="font-size: 10pt"><B>Covenant Defeasance</B>

<P align="left" style="font-size: 10pt">Under current federal tax law, we can make the same type of deposit described
above and be released from some of the restrictive covenants in the applicable
indenture. This is called covenant defeasance. In that event, holders would
lose the protection of those restrictive covenants but would gain the
protection of having money and securities set aside in trust to repay the debt
securities. Unless otherwise specified

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<P align="left" style="font-size: 10pt">in the prospectus supplement, in order to achieve covenant defeasance, we must
do the following, subject to certain conditions:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We must deposit in trust for the benefit of holders of the
applicable debt securities a combination of money and U.S. government
or U.S. government agency notes or bonds that will generate enough cash
to make interest, principal and any other payments on the applicable
debt securities on their various due dates.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We must deliver to the trustee a legal opinion of our counsel
confirming that we may make the above deposit without causing holders
to be taxed on the applicable debt securities any differently than if
we did not make the deposit and instead repaid the securities
ourselves.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If we accomplish covenant defeasance, unless otherwise specified in the
prospectus supplement, the following provisions of the applicable indenture,
among others, would no longer apply:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater&#146;s promises regarding conduct of its business previously
described above under the subsection entitled &#147;Certain Covenants with
Respect to Senior Debt Securities&#148;;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the conditions that apply when Bowater merges or engages in similar
transactions, as previously described above under the subsection
entitled &#147;Mergers and Similar Events&#148;; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the events of default relating to breach of certain covenants,
certain events in bankruptcy, insolvency or reorganization, and
acceleration of the maturity of other debt, described below under the
subsection entitled &#147;Events of Default.&#148;</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If we accomplish covenant defeasance, holders can still look to us for
repayment of the applicable debt securities if there were a shortfall in the
trust deposit. In fact, if one of the remaining events of default occurred
(such as our bankruptcy) under an indenture and the debt securities issued
under it became immediately due and payable, there may be such a shortfall.
Depending on the event causing the default, holders of debt securities may not
be able to obtain payment of the shortfall.



<P align="left" style="font-size: 10pt"><B>EVENTS OF DEFAULT</B>

<P align="left" style="font-size: 10pt">The term &#147;event of default&#148; means any of the following, in addition to any
other events of default described in and except as otherwise provided in a
prospectus supplement:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater does not pay interest on a debt security of the applicable
series within 30&nbsp;days of its due date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater does not pay the principal or any premium on a debt
security of the applicable series on its due date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater fails to deposit any sinking fund payment when due in
respect of any debt security of such series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater fails to perform any restrictive covenant or other term of
the applicable indenture for 60&nbsp;days after receipt of notice of such
breach and a request to cure from the trustee or holders of at least
25% of the principal amount of the applicable debt securities
outstanding; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater files for bankruptcy or certain other events of bankruptcy,
insolvency or reorganization occur.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>REMEDIES IF AN EVENT OF DEFAULT OCCURS</B>

<P align="left" style="font-size: 10pt">The following provisions will apply unless otherwise specified in the
applicable prospectus supplement. If an event of default for an indenture has
occurred and has not been cured, the trustee or the holders of 25% of the
principal amount of the outstanding debt securities under that indenture may
declare the entire principal amount of all debt securities issued under that
indenture to be due and immediately payable.



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<P align="left" style="font-size: 10pt">This is called a declaration of acceleration of maturity. If an event of
default occurs because of certain events in bankruptcy, insolvency or
reorganization, the principal amount of all debt securities will be
automatically accelerated, without any action by the trustee or any holder. A
declaration of acceleration of maturity for debt securities issued under a
particular indenture may be canceled by the holders of at least a majority in
principal amount of the debt securities issued under that indenture if we
become current in our payments (other than the accelerated payments) and all
other events of default have been cured or waived.


<P align="left" style="font-size: 10pt">Except in cases of default, where the trustee has some special duties, the
trustee is not required to take any action under an indenture at the request of
any holders unless the holders under that indenture offer the trustee
protection from expenses and liability satisfactory to the trustee, which is
called an indemnity. If reasonable indemnity is provided, the holders of a
majority of the principal amount of the outstanding debt securities for an
indenture may direct the time, method and place of conducting any lawsuit or
other formal legal action seeking any remedy available to the trustee. These
majority holders may also direct the trustee in performing any other action
under the applicable indenture.


<P align="left" style="font-size: 10pt">Before a holder of debt securities may bypass the trustee and bring an
independent lawsuit or other formal legal action or take other steps to enforce
rights or protect interests relating to debt securities, the following must
occur:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holder must give the trustee written notice that an event of
default has occurred and remains uncured;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holders of 25% in principal amount of all outstanding debt
securities under the applicable indenture must make a written request
that the trustee take action because of the default, and must offer
indemnity reasonably satisfactory to the trustee against the cost and
other liabilities of taking that action;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trustee must have not taken action for 60&nbsp;days after the
receipt of the above notice and offer of indemnity; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holders of a majority in principal amount of all outstanding
debt securities under the applicable indenture must not have given the
trustee any direction inconsistent with that request during such 60&nbsp;day
period.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">A holder of debt securities is, however, entitled at any time to bring a
lawsuit for the payment of money due on debt securities on or after their due
date.


<P align="left" style="font-size: 10pt">We will furnish to the trustee every year a written statement regarding our
performance of our obligations under the indentures and any default in such
performance.



<P align="left" style="font-size: 10pt"><B>CONVERSION AND EXCHANGE RIGHTS</B>

<P align="left" style="font-size: 10pt">The terms and conditions, if any, upon which the debt securities of any series
will be convertible into or exchangeable for shares of our common or preferred
stock or for other securities or property will be set forth in the prospectus
supplement relating thereto. Such terms will include the conversion or
exchange price (or manner of calculation thereof), the conversion or exchange
period, provisions as to whether conversion or exchange will be at the option
of the holders of such series of debt securities, at our option or automatic or
mandatory, the events requiring an adjustment of the conversion or exchange
price and provisions affecting conversion or exchange in the event of the
redemption of such series of debt securities. The prospectus supplement will
also describe any material U.S. federal income tax considerations. The debt
securities, if convertible or exchangeable, will not be convertible into or
exchangeable for securities of a third party.



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<P align="left" style="font-size: 10pt"><B>THE TRUSTEE</B>

<P align="left" style="font-size: 10pt">Subject to the terms of the applicable indenture, the trustee for each series
of debt securities is The Bank of New York. The trustee&#146;s current address is
101 Barclay Street, Floor 8W, New York, New York 10286. The trustee also serves
as the registrar and transfer agent for our common stock, is a lender under
certain of our credit facilities, and serves as a trustee under other debt
securities issued by us and our subsidiaries having an aggregate principal
amount of $1.319&nbsp;billion and in connection with certain of our pension plans.


<P align="left" style="font-size: 10pt">The indentures provide that, except during the continuance of an event of
default, the trustee will perform only such duties as are specifically set
forth in the applicable indenture. During the existence of an event of default,
the trustee may in its discretion proceed to protect and enforce its rights and
the rights of the holders of the debt securities subject to the indenture by
such appropriate judicial proceedings as the trustee shall deem necessary to
protect and enforce any such rights.


<P align="left" style="font-size: 10pt">The indentures and provisions of the Trust Indenture Act incorporated by
reference in them contain limitations on the rights of the trustee, should it
become our creditor, to obtain payment of claims in certain cases or to
liquidate certain property received by it in respect of any such claim as
security or otherwise. The trustee is permitted to engage in other transactions
with us or any of our affiliates. If the trustee acquires any conflicting
interest (as defined in the applicable indenture or in the Trust Indenture
Act), it must eliminate such conflict or resign.



<P align="left" style="font-size: 10pt"><B>GOVERNING LAW</B>

<P align="left" style="font-size: 10pt">The indentures and the debt securities are governed by the laws of the State of
New York.



<P align="left" style="font-size: 10pt"><B>BOOK-ENTRY, DELIVERY AND FORM OF SECURITIES</B>

<P align="left" style="font-size: 10pt">We may issue the debt securities of any series in whole or in part in the form
of one or more global securities to be deposited with, or on behalf of, a
depositary (the &#147;depositary&#148;) identified in the prospectus supplement relating
to such series. &#147;Global securities&#148; represent in the aggregate the total
principal or face amount of the securities and, once on deposit with a
depositary, allow trading of the securities through the depositary&#146;s book-entry
system (as further described below). Global securities, if any, issued in the
United States are expected to be deposited with The Depository Trust Company
(&#147;DTC&#148;), as depositary. If used, global securities will be issued in fully
registered form and may be issued in either temporary or permanent form.
Unless and until it is exchanged in whole or in part for the individual debt
securities represented thereby, a global security may not be transferred except
as a whole by the depositary for such global security to a nominee of such
depositary or by a nominee of such depositary to such depositary or another
nominee of such depositary or by such depositary or any nominee of such
depositary to a successor depositary or any nominee of such successor.


<P align="left" style="font-size: 10pt">The specific terms of any depositary arrangement with respect to any series of
debt securities will be described in the prospectus supplement relating to such
series. We expect that, unless otherwise indicated in the applicable
prospectus supplement, the following provisions will apply to any depositary
arrangements.


<P align="left" style="font-size: 10pt">Any global securities will be deposited on the issue date with, or on behalf
of, DTC and registered in the name of Cede &#038; Co., as nominee of DTC (which we
will refer to as the &#147;global security holder&#148;). DTC will maintain the
applicable debt securities in denominations of $1,000 and integral multiples
thereof through its book-entry facilities.


<P align="left" style="font-size: 10pt">We have been advised as follows:


<P align="left" style="font-size: 10pt">DTC is a limited-purpose trust company that was created to hold securities for
its participating organizations, including the Euroclear System and Clearstream
Banking, Soci&#233;t&#233; Anonyme, Luxembourg

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<P align="left" style="font-size: 10pt">(collectively, the &#147;Participants&#148; or the &#147;Depositary&#146;s Participants&#148;), and to
facilitate the clearance and settlement of transactions in these securities
between Participants through electronic book-entry changes in accounts of its
Participants. The Depositary&#146;s Participants include securities brokers and
dealers, banks and trust companies, clearing corporations and certain other
organizations. Access to DTC&#146;s system is also available to other entities such
as banks, brokers, dealers and trust companies (collectively, the &#147;Indirect
Participants&#148; or the &#147;Depositary&#146;s Indirect Participants&#148;) that clear through
or maintain a custodial relationship with a Participant, either directly or
indirectly. Persons who are not Participants may beneficially own securities
held by or on behalf of DTC only through the Depositary&#146;s Participants or the
Depositary&#146;s Indirect Participants. Pursuant to procedures established by DTC,
ownership of the securities will be shown on, and the transfer of ownership
thereof will be effected only through, records maintained by DTC (with respect
to the interests of the Depositary&#146;s Participants) and the records of the
Depositary&#146;s Participants (with respect to the interests of the Depositary&#146;s
Indirect Participants).


<P align="left" style="font-size: 10pt">The laws of some states may require that certain persons take physical delivery
in definitive form of securities that they own. Consequently, the ability to
transfer applicable securities may be limited to that extent.


<P align="left" style="font-size: 10pt">So long as any global security holder is the registered owner of any applicable
securities, the global security holder will be considered the sole holder of
outstanding securities represented by such global securities under the
applicable indenture. Except as provided below, owners of securities
represented by global certificates will not be entitled to have the securities
registered in their names and will not be considered the owners or holders
thereof under the applicable indenture for any purpose, including with respect
to the giving of any directions, instructions or approvals to the trustee
thereunder. Neither the issuer of the securities nor the trustee will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of any applicable securities by DTC, or for
maintaining, supervising or reviewing any records of DTC relating to such
securities.


<P align="left" style="font-size: 10pt">Payments in respect of the principal of, premium, if any, and interest on any
securities registered in the name of the global security holder on the
applicable record date will be payable by the trustee to or at the direction of
the global security holder in its capacity as the registered holder under the
indenture. Under the terms of the applicable indenture, if global certificates
are used the issuer of the securities and the trustee may treat the persons in
whose names any securities, including the global securities, are registered as
the owners thereof for the purpose of receiving such payments and for any and
all other purposes whatsoever. Consequently, neither the issuer of the
securities nor the trustee has or will have any responsibility or liability for
the payment of such amounts to beneficial owners of any applicable securities
(including principal, premium, if any, and interest). We believe, however, that
it is currently the policy of DTC to immediately credit the accounts of the
relevant Participants with such payments, in amounts proportionate to their
respective beneficial interests in the relevant security as shown on the
records of DTC. Payments by the Depositary&#146;s Participants and the Depositary&#146;s
Indirect Participants to the beneficial owners of securities will be governed
by standing instructions and customary practice and will be the responsibility
of the Depositary&#146;s Participants or the Depositary&#146;s Indirect Participants.


<P align="left" style="font-size: 10pt">Subject to certain conditions, if global certificates are used, any person
having a beneficial interest in the global securities may, upon request to the
trustee and confirmation of such beneficial interest by the Depositary or its
Participants or Indirect Participants, exchange such beneficial interest for
the applicable debt security in definitive form. Upon any such issuance, the
trustee is required to register such security in the name of, and cause the
same to be delivered to, such person or persons (or the nominee of any
thereof). In addition, if (1)&nbsp;we notify the trustee in writing that DTC is no
longer willing or able to act as a depositary and we are unable to locate a
qualified successor within 90&nbsp;days or (2)&nbsp;we, at our option, notify the trustee
in writing that we elect to cause the issuance any applicable debt security in
definitive form under the indenture, then, upon surrender by the global
security holder of its global security,

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<P align="left" style="font-size: 10pt">securities in such form will be issued to each person that such global security
holder and DTC identify as being the beneficial owner of the related
securities.


<P align="left" style="font-size: 10pt">If global certificates are used, neither Bowater nor the trustee will be liable
for any delay by the global security holder or DTC in identifying the
beneficial owners of securities and the issuer of the securities and the
trustee may conclusively rely on, and will be protected in relying on,
instructions from the global security holder or DTC for all purposes.


<P align="left" style="font-size: 10pt">The information in this section concerning DTC, and its book-entry system has
been obtained from sources that we believe to be reliable, but we take no
responsibility for the accuracy thereof.


<DIV align="left">
<A name="115"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of the Trust Preferred Securities</B>

<P align="left" style="font-size: 10pt">Each trust may issue only one series of trust preferred securities having terms
described in the prospectus supplement relating thereto. The declaration of
each trust authorizes an administrative trustee of the trust to issue on its
behalf one series of trust preferred securities. Each declaration will be
qualified as an indenture under the Trust Indenture Act. The trust preferred
securities will have such terms, including distributions, redemption or sinking
fund, voting, liquidation rights, dividend rate and such other preferred,
deferred or other special rights and such restrictions as shall be set forth in
each declaration or made part of each declaration by the Trust Indenture Act
and the Delaware Statutory Trust Act. The following summary of the material
terms and provisions of the trust preferred securities is subject to, and
qualified by reference to, the applicable prospectus supplement, the applicable
declaration (the forms of which are filed as exhibits to the registration
statement of which this prospectus is a part), the Delaware Statutory Trust Act
and the Trust Indenture Act. The applicable prospectus supplement may also
state that any of the terms set forth in this prospectus are inapplicable to
the securities offered, subject to the limitation that the prospectus
supplement may not make changes to the information in this prospectus that
fundamentally change the nature of the offering or the securities offered.



<P align="left" style="font-size: 10pt"><B>GENERAL</B>

<P align="left" style="font-size: 10pt">The declaration of each trust will authorize the administrative trustees, on
behalf of the trust, to issue the trust preferred securities, which will
represent preferred undivided beneficial interests in the assets of the trust,
and the trust common securities, which will represent common undivided
beneficial interests in the assets of the trust. All of the trust common
securities will be owned directly or indirectly by Bowater.


<P align="left" style="font-size: 10pt">The trust common securities will rank equal with, and payments will be made
thereon <I>pro rata </I>with, the trust preferred securities except that the trust
common securities will generally have full voting rights and, if an event of
default under the declaration has occurred and is continuing, (1)&nbsp;the rights of
the holders of the trust common securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise will be
subordinated to the rights of the holders of the trust preferred securities,
and (2)&nbsp;the holders of the trust preferred securities instead of the holders of
the trust common securities will have the right to remove, replace and appoint
the property trustee and the Delaware trustee.


<P align="left" style="font-size: 10pt">The declaration of each trust will limit the business and activities of the
trust and will provide that the trust may not, among other things, issue any
securities other than the trust securities or to incur any indebtedness, except
that the property trustee of the trust will own and hold debt securities of
Bowater Incorporated for the benefit of the trust and the holders of the trust
securities.


<P align="left" style="font-size: 10pt">The payment of distributions out of money held by each trust with respect to
the trust preferred securities, and payments upon redemption of the trust
preferred securities or liquidation of each trust with respect to the trust
preferred securities, will be guaranteed by Bowater as described under the
section entitled &#147;Description of the Trust Preferred Securities Guarantees&#148;
below.



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<P align="left" style="font-size: 10pt">The trust preferred guarantee trustee will hold the applicable trust preferred
securities guarantees for the benefit of the holders of the trust preferred
securities. Each trust preferred securities guarantee will be a full and
unconditioned guarantee of specified guarantee payments to be made by each
trust to the extent not made by the trust; provided, however, that the
specified guarantee payments will not include payment of distributions on a
trust&#146;s trust preferred securities when that trust does not have sufficient
available funds in the property account to make those distributions.



<P align="left" style="font-size: 10pt"><B>TERMS OF THE TRUST PREFERRED SECURITIES</B>

<P align="left" style="font-size: 10pt">The specific terms of the trust preferred securities of each trust will be set
forth in the applicable prospectus supplement relating thereto, including the
following, as applicable:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the distinctive designation of the trust preferred securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of trust preferred securities issued by the trust;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the annual distribution rate (or method of determining such rate)
for trust preferred securities issued by the trust and the date or
dates upon which such distributions will be payable on a quarterly or
other basis to holders of trust preferred securities that are
outstanding;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether distributions on trust preferred securities issued by the
trust will be cumulative and, in the case of trust preferred securities
having cumulative distribution rights, the date(s) or method of
determining the date(s) from which distributions on trust preferred
securities issued by the trust will be cumulative;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount or amounts that will be paid out of the assets of the
trust to the trust preferred security holders upon voluntary or
involuntary dissolution, winding-up or termination of the trust;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and conditions, if any, under which trust preferred
securities may be converted into shares of our capital stock, including
the conversion price per share and the circumstances, if any, under
which the conversion right will expire (the trust preferred securities
will be convertible, if at all, only into securities issued by
Bowater);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and conditions, if any, upon which the related series of
our debt securities may be distributed to holders of securities of the
trust;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the right or obligation, if any, of the trust to purchase or redeem
its trust preferred securities, including the amount(s) that will be
paid out of the assets of the trust to purchase or redeem its trust
preferred securities and the price(s) at which, the period(s) within
which, and the terms and conditions upon which trust preferred
securities issued by the trust will be purchased or redeemed, in whole
or in part, pursuant to such right or obligation; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other relevant rights, preferences, privileges, limitations or
restrictions of trust preferred securities issued by the trust not
inconsistent with the declaration of the trust or with applicable law.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The trust preferred securities of each trust will not have any voting rights
except for (i)&nbsp;voting rights required by law, (ii)&nbsp;if an event of default has
occurred and is continuing under the applicable declaration of trust, the right
to elect the property trustee and the Delaware trustee, and (iii)&nbsp;approval
rights specified in the applicable declaration of trust, including those
relating to amendments to, and waivers of, specified provisions of the
declaration of the applicable trust and the indenture governing the debt
securities held by the applicable trust.


<P align="left" style="font-size: 10pt">Pursuant to the applicable declaration, the property trustee for the applicable
trust will own a series of our debt securities purchased by the trust for the
benefit of the trust preferred security holders and the trust common security
holders. The payment of dividends out of money held by the applicable trust,
and

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<P align="left" style="font-size: 10pt">payments upon redemption of trust preferred securities or liquidation of either
trust, will be guaranteed by Bowater to the extent described under &#147;Description
of the Trust Preferred Securities Guarantees&#148; below.


<P align="left" style="font-size: 10pt">Any applicable U.S. federal income tax considerations applicable to any
offering of trust preferred securities will be described in the related
prospectus supplement.


<P align="left" style="font-size: 10pt">In connection with the issuance of trust preferred securities, each trust will
issue one series of trust common securities. The declaration of each trust
authorizes an administrative trustee of the trust to issue on behalf of the
trust one series of trust common securities having terms, including terms with
respect to distributions, redemption, voting, liquidation rights and any other
rights and restrictions, as described in the declaration. The terms of the
trust common securities issued by a trust will be substantially identical to
the terms of the trust preferred securities issued by the trust except that,
(1)&nbsp;if an event of default under the declaration has occurred and is
continuing, the rights of the holders of the trust common securities to payment
in respect of distributions and payments upon liquidation, redemption and
otherwise will be subordinated to the rights of the holders of the trust
preferred securities, and (2)&nbsp;the trust common securities will generally have
full voting rights except, if an event of default under the declaration has
occurred and is continuing, the right to elect the property trustee and the
Delaware trustee associated with the trust common securities will be suspended
and that right will be exercisable by the holders of the trust preferred
securities. All of the trust common securities of a trust will be directly or
indirectly owned by Bowater.


<P align="left" style="font-size: 10pt">The applicable prospectus supplement will describe whether we and/or certain of
our subsidiaries maintain deposit accounts and conduct other banking
transactions, including borrowings in the ordinary course of business, with the
property trustee. The declaration and the trust preferred securities will be
governed by the laws of the State of Delaware.



<P align="left" style="font-size: 10pt"><B>INFORMATION CONCERNING THE TRUSTEES</B>

<P align="left" style="font-size: 10pt">David G. Maffucci (Bowater&#146;s Executive Vice President and Chief Financial
Officer) and William G. Harvey (Bowater&#146;s Vice President and Treasurer) are
currently administrative trustees of each of the trusts. As of the date of
this prospectus, Mr.&nbsp;Maffucci beneficially owns approximately 163,905 shares of
Bowater common stock (including shares underlying currently exercisable stock
options), stock appreciation rights with respect to 41,900 shares of Bowater
common stock and phantom stock units with respect to approximately 1,663 shares
of Bowater common stock and Mr.&nbsp;Harvey beneficially owns approximately 27,776
shares of Bowater common stock (including shares underlying currently
exercisable stock options), stock appreciation rights with respect to 19,100
shares of Bowater common stock, phantom stock units with respect to
approximately 166 shares of Bowater common stock, and 78 exchangeable shares
issued by Bowater Canada Inc. The Bank of New York (Delaware) serves as
Delaware trustee of each of the trusts. The Bank of New York, an affiliate of
the Delaware trustee, will serve as property trustee under the declaration for
each trust and as trustee of the indenture relating to the debt securities to
be held by the trust. The Bank of New York also serves as the registrar and
transfer agent for our common stock, is a lender under certain of our credit
facilities, and serves as a trustee under other debt securities issued by us
and our subsidiaries having an aggregate principal amount of $1.319&nbsp;billion and
in connection with certain of our pension plans.


<DIV align="left">
<A name="116"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Description of the Trust Preferred Securities Guarantees</B>

<P align="left" style="font-size: 10pt">Set forth below is a summary of information concerning the trust preferred
securities guarantees to be executed and delivered by Bowater for the benefit
of the holders from time to time of the trust preferred securities. Each trust
preferred securities guarantee will be qualified as an indenture under the
Trust Indenture Act. The Bank of New York will be the trust preferred
guarantee trustee. The terms of each trust preferred securities guarantee will
be those set forth in the guarantee and those made part of the guarantee by the
Trust Indenture Act. The following summary of the material provisions of the
trust

<P align="center" style="font-size: 10pt">-33-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">preferred securities guarantees is subject in all respects to the provisions
of, and is qualified by reference to, the trust preferred securities guarantees
and the Trust Indenture Act. Each trust preferred securities guarantee will be
held by the trust preferred guarantee trustee for the benefit of the holders of
the trust preferred securities of the applicable trust.



<P align="left" style="font-size: 10pt"><B>GENERAL</B>

<P align="left" style="font-size: 10pt">Pursuant to each trust preferred securities guarantee, Bowater will irrevocably
and unconditionally agree to guarantee to the holders of the trust preferred
securities issued by a trust the payment by the applicable trust of each of the
payments described below, which we refer to as the guaranteed payments.


<P align="left" style="font-size: 10pt">The following payments or distributions (without duplication) with respect to
the trust preferred securities issued by a trust will be guaranteed by us:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any accrued and unpaid distributions that are required to be paid
on the trust preferred securities, to the extent the trust has funds
available for them,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to any trust preferred securities that are redeemable
and are called for redemption by the trust, the redemption price, which
includes all accrued and unpaid distributions to the date of the
redemption, to the extent the trust has funds available for them, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon a voluntary or involuntary termination, dissolution,
winding-up or liquidation of the trust (other than in connection with
the distribution of debt securities held by the trust to the holders of
trust preferred securities), the lesser of:</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate of the liquidation preference amount and all
accrued and unpaid distributions on the trust preferred securities
to the date of payment, to the extent the trust has funds available
for them, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount of assets of the trust remaining available for
distribution to holders of trust preferred securities in liquidation
of the trust.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Bowater&#146;s guarantee obligation may be satisfied by making direct payment of the
required amounts to the holders of trust preferred securities or by causing the
applicable trust to pay the required amounts to the holders.


<P align="left" style="font-size: 10pt">Each trust preferred securities guarantee will be a full and unconditional
guarantee of the guaranteed payments with respect to the trust preferred
securities issued by the applicable trust from the time of issuance of the
trust preferred securities, but will not apply to the payment of distributions
or other payments on the trust preferred securities when the property trustee
does not have sufficient funds in the trust&#146;s property account to make those
distributions or other payments. If Bowater does not make interest payments on
the debt securities held by the trust, the trust will not make distributions on
the trust preferred securities issued by the trust and will not have funds
available for those distributions. Holders of the trust preferred securities
will be permitted under the trust preferred securities guarantee to institute
legal proceedings directly against Bowater to enforce payment of the guaranteed
payments without first proceeding against the applicable trust.


<P align="left" style="font-size: 10pt">The applicable prospectus supplement will set forth the status of the trust
preferred securities guarantee. Unless otherwise specified in the applicable
prospectus supplement, each trust preferred securities guarantee will rank
equal with the debt securities held by the applicable trust.



<P align="left" style="font-size: 10pt"><B>CERTAIN COVENANTS OF BOWATER</B>

<P align="left" style="font-size: 10pt">Unless otherwise provided in the applicable prospectus supplement, in each
trust preferred securities guarantee, Bowater will covenant that, so long as
the trust preferred securities issued by the relevant trust remain outstanding,
if any of the conditions described as a &#147;trigger event&#148; below has occurred and
is

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">continuing under the applicable indenture with respect to the debt securities
held by the trust, then Bowater may not:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>declare or pay any dividend on, or make any distribution with
respect to, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of its capital stock, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any payment of interest, principal or premium, if any, on or
repay, repurchase or redeem any debt securities (including guarantees
of indebtedness for money borrowed) of Bowater that rank equal with or
junior to the applicable debt securities held by the trust as to
payment of dividends or distribution of assets upon liquidation.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">These restrictions will not apply to (1)&nbsp;any dividend, redemption, liquidation,
interest, principal or guarantee payments by Bowater where the payment is made
in securities (including capital stock) that rank equal with or junior with
respect to the payment of dividends or distribution of assets upon liquidation
to the securities on which the dividend, redemption, interest, principal or
guarantee payment is being made, (2)&nbsp;payments under the applicable trust
preferred securities guarantee, (3)&nbsp;purchases by Bowater of its common stock
related to the issuance of its common stock under any benefit plan for its
directors, officers or employees, (4)&nbsp;any payment, distribution, redemption,
purchase or acquisition resulting from a reclassification of Bowater&#146;s capital
stock or the exchange or conversion of one series or class of its capital stock
for another series or class, (5)&nbsp;the purchase of fractional interests in
shares of Bowater&#146;s capital stock pursuant to the conversion or exchange
provisions of that capital stock or the security being converted or exchanged
or (6)&nbsp;issuances of Bowater&#146;s common stock upon the retraction of exchangeable
shares issued by Bowater Canada Inc.


<P align="left" style="font-size: 10pt">A trigger event under each trust preferred securities guarantee is any of the
following:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater has actual knowledge of any event that with the giving of
notice or the lapse of time, or both, would constitute an &#147;event of
default&#148; under the indenture with respect to the debt securities held
by the trust, and Bowater has not taken reasonable steps to cure the
event of default;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater is in default with respect to its payment of any
obligations under the guarantee;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bowater has given notice of its selection of any &#147;extension period&#148;
(which would be defined in the applicable indenture) with respect to
the debt securities held by the trust and either Bowater has not
rescinded that notice, or that extension period, or any extension of
it, still continues.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">In addition, in each trust preferred securities guarantee Bowater will
covenant:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>while the applicable trust remains the holder of all the debt
securities issued to that trust, to pay to that trust any additional
sums that Bowater has elected to pay with respect to the trust
preferred securities and common securities upon the occurrence of a
&#147;tax event&#148; (generally, receipt by the trust of a legal opinion to the
effect that (i)&nbsp;the trust will be subject to more than a <I>de minimis</I>
amount of taxes, duties, assessments or other governmental charges, or
(ii)&nbsp;interest payable by Bowater on the applicable debt securities will
not be deductible for U.S. federal income tax purposes or (iii)&nbsp;the
trust will be subject to U.S. federal income tax with respect to income
received or accrued on the applicable debt securities).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain 100% ownership (directly or indirectly and including
through permitted successors) in the trust common securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to voluntarily terminate, wind-up or liquidate the applicable
trust (except in connection with a distribution of the debt securities
held by the trust to the holders of the applicable trust preferred
securities or in connection with those mergers and similar events
permitted by the applicable declaration of trust);</TD>
</TR>

</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use its reasonable efforts to cause the applicable trust to
remain classified as a grantor trust for U.S. federal income tax
purposes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>while applicable trust preferred securities are outstanding, not to
convert any debt securities held by the applicable trust except as
provided in the applicable declaration of trust;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the trust preferred securities or the applicable debt securities
are convertible into Bowater&#146;s common stock, to reserve for issuance
the common stock that would be required in connection with any
conversion and to deliver shares of common stock upon any election by a
holder to convert those securities; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to honor any obligations relating to the conversion or exchange of
the trust preferred securities into the debt securities held by the
trust or Bowater&#146;s common stock.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>AMENDMENTS AND ASSIGNMENT</B>

<P align="left" style="font-size: 10pt">Except with respect to any changes that do not materially adversely affect the
rights of holders of trust preferred securities (in which case no consent will
be required), each trust preferred securities guarantee may be amended only
with the prior approval of the holders of not less than a majority in
liquidation preference amount of the outstanding trust preferred securities
issued by the relevant trust. The manner of obtaining any approval of holders
of the trust preferred securities will be set forth in the applicable
prospectus supplement. All guarantees and agreements contained in a trust
preferred securities guarantee will bind the successors, assigns, receivers,
trustees and representatives of Bowater and will inure to the benefit of the
preferred guarantee trustee and the holders of the trust preferred securities
then outstanding of the relevant trust.



<P align="left" style="font-size: 10pt"><B>TERMINATION OF THE TRUST PREFERRED SECURITIES GUARANTEES</B>


<P align="left" style="font-size: 10pt">Each trust preferred securities guarantee will terminate and be of no further
force and effect as to the trust preferred securities issued by the applicable
trust upon the earliest of (a)&nbsp;full payment of any redemption price of all
trust preferred securities of the trust, (b)&nbsp;distribution of the applicable
debt securities held by the trust to the holders of the trust preferred
securities of the trust, (c)&nbsp;full payment of the amounts payable upon
liquidation of the trust and (d)&nbsp;if the trust preferred securities are
convertible and are converted into Bowater common stock, the distribution of
Bowater&#146;s common stock to the holders of the trust preferred securities in
connection with that conversion. Each trust preferred securities guarantee
will continue to be effective or will be reinstated, as the case may be, if at
any time any holder of trust preferred securities must repay to the applicable
trust or Bowater, or their successors, any sums paid to them under the trust
preferred securities or the trust preferred securities guarantee.



<P align="left" style="font-size: 10pt"><B>INFORMATION CONCERNING THE TRUST PREFERRED GUARANTEE TRUSTEE</B>

<P align="left" style="font-size: 10pt">The trust preferred guarantee trustee, prior to the occurrence of a default
with respect to a trust preferred securities guarantee and after the curing of
all such defaults that may have occurred, undertakes to perform only such
duties as are specifically set forth in the applicable trust preferred
securities guarantee and, after default, must exercise the same degree of care
and skill that a prudent individual would exercise in the conduct of his or her
own affairs. Subject to those provisions, the trust preferred guarantee
trustee is under no obligation to exercise any of the powers vested in it by
the trust preferred securities guarantee at the request of any holder of trust
preferred securities, unless offered reasonable security and indemnity against
the costs, expenses and liabilities that might be incurred in exercising those
powers; but the foregoing will not relieve the trust preferred guarantee
trustee, upon the occurrence of a default under the applicable trust preferred
securities guarantee, of the obligation to exercise the rights and powers
vested in it by the trust preferred securities guarantee and to use the same
degree of care and skill in the exercise of those rights and powers as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs. The trust preferred guarantee trustee will also serve
as property trustee under

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">the declaration for each trust and as trustee of the indenture relating to the
debt securities held by the trust. In addition, this trustee serves as the
registrar and transfer agent for our common stock, is a lender under certain of
our credit facilities, and serves as a trustee under other debt securities
issued by us and our subsidiaries having an aggregate principal amount of
$1.319&nbsp;billion and in connection with certain of our pension plans.



<P align="left" style="font-size: 10pt"><B>GOVERNING LAW</B>

<P align="left" style="font-size: 10pt">Each trust preferred securities guarantee is governed by, and construed in
accordance with, the internal laws of the State of New York.


<DIV align="left">
<A name="117"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Plan of Distribution</B>

<P align="left" style="font-size: 10pt">Bowater Incorporated and the trusts may sell the securities in any of three
ways: (1)&nbsp;through underwriters or dealers; (2)&nbsp;directly to a limited number of
institutional purchasers or to a single purchaser; or (3)&nbsp;through agents. Any
such dealer or agent, in addition to any underwriter, may be deemed to be an
underwriter within the meaning of the Securities Act of 1933, as amended.


<P align="left" style="font-size: 10pt">In addition, we may enter into derivative transactions with third parties, or
sell securities not covered by this prospectus to third parties in privately
negotiated transactions. If the applicable prospectus supplement indicates, in
connection with such a transaction the third parties may, pursuant to this
prospectus and the applicable prospectus supplement, sell securities covered by
this prospectus and the applicable prospectus supplement. If so, the third
party may use securities borrowed from us or others to settle such sales and
may use securities received from us to close out any related short positions.
We may also loan or pledge securities covered by this prospectus and the
applicable prospectus supplement to third parties, who may sell the loaned
securities or, in an event of default in the case of a pledge, sell the pledged
securities pursuant to this prospectus and the applicable prospectus
supplement.


<P align="left" style="font-size: 10pt">Each prospectus supplement, to the extent applicable, will describe the terms
of the offering of securities to which that supplement relates and will
include:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number and terms of the securities to which the prospectus supplement relates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name or names of any underwriters, dealers, agents and trustees;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase price of such securities and the net proceeds to
Bowater and/or the applicable trusts from such sale;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any underwriting discounts and other items constituting underwriters&#146; compensation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the public offering price; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any discounts or concessions that may be allowed or reallowed or
paid to dealers and any securities exchanges on which the securities
may be listed.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If underwriters are used in the sale of securities, those securities will be
acquired by the underwriters for their own account and may be resold from time
to time in one or more transactions, including negotiated transactions, at a
fixed public offering price or at varying prices determined at the time of
sale. The securities may be offered to the public either through underwriting
syndicates represented by managing underwriters or directly by one or more
underwriters acting alone. Unless otherwise set forth in the applicable
prospectus supplement, the obligations of the underwriters to purchase the
securities described in the applicable prospectus supplement will be subject to
certain conditions precedent, and the underwriters will be obligated to
purchase all such securities if any are so purchased by them. Any public
offering price and any discounts or concessions allowed or reallowed or paid to
dealers may be changed from time to time.



<P align="center" style="font-size: 10pt">-37-
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">The securities may be sold directly by Bowater Incorporated and/or the
applicable trusts or through agents designated by Bowater Incorporated and/or
the applicable trusts from time to time. Any agents involved in the offer or
sale of the securities in respect of which this prospectus is being delivered,
and any commissions payable by Bowater Incorporated or the applicable trusts to
such agents, will be set forth in the applicable prospectus supplement. Unless
otherwise indicated in the applicable prospectus supplement, any such agent
will be acting on a best efforts basis for the period of its appointment.


<P align="left" style="font-size: 10pt">If dealers are utilized in the sale of any securities, Bowater Incorporated
and/or the applicable trusts will sell the securities to the dealers, as
principals. Any dealer may resell the securities to the public at varying
prices to be determined by the dealer at the time of resale. The name of any
dealer and the terms of the transaction will be set forth in the prospectus
supplement with respect to the securities being offered.


<P align="left" style="font-size: 10pt">Securities may also be offered and sold, if so indicated in the applicable
prospectus supplement, in connection with a remarketing upon their purchase, in
accordance with a redemption or repayment pursuant to their terms, or
otherwise, by one or more firms, which we refer to herein as the &#147;remarketing
firms,&#148; acting as principals for their own accounts or as Bowater
Incorporated&#146;s or the applicable trust&#146;s agents, as applicable. Any
remarketing firm will be identified and the terms of its agreement, if any,
with Bowater Incorporated or the applicable trust and its compensation will be
described in the applicable prospectus supplement. Remarketing firms may be
deemed to be underwriters, as that term is defined in the Securities Act of
1933, as amended, in connection with the securities remarketed thereby.


<P align="left" style="font-size: 10pt">If so indicated in the applicable prospectus supplement, Bowater Incorporated
or the applicable trust will authorize agents, underwriters or dealers to
solicit offers by certain specified institutions to purchase the securities to
which this prospectus and the applicable prospectus supplement relates from
Bowater Incorporated or the applicable trust at the public offering price set
forth in the applicable prospectus supplement, plus, if applicable, accrued
interest, pursuant to delayed delivery contracts providing for payment and
delivery on a specified date in the future. Such contracts will be subject
only to those conditions set forth in the applicable prospectus supplement, and
the applicable prospectus supplement will set forth the commission payable for
solicitation of such contracts.


<P align="left" style="font-size: 10pt">Unless otherwise specified in the applicable prospectus supplement,
underwriters will not be obligated to make a market in any securities. No
assurance can be given regarding the activity of trading in, or liquidity of,
any securities.


<P align="left" style="font-size: 10pt">Agents, dealers, underwriters and remarketing firms may be entitled, under
agreements entered into with Bowater Incorporated and/or the applicable trusts,
to indemnification by Bowater Incorporated and/or the applicable trust against
certain civil liabilities, including liabilities under the Securities Act of
1933, as amended, or to contribution to payments they may be required to make
in respect thereof. Agents, dealers, underwriters and remarketing firms may be
customers of, engage in transactions with, or perform services for, Bowater
Incorporated, its subsidiaries and/or the applicable trusts in the ordinary
course of business.


<P align="left" style="font-size: 10pt">Each series of securities will be a new issue and, other than our common stock,
which is listed on the New York Stock Exchange, the Pacific Stock Exchange and
The London Stock Exchange, will have no established trading market. We may
elect to list any series of securities on an exchange, and in the case of our
common stock, on any additional exchange, but, unless otherwise specified in
the applicable prospectus supplement, we are not obligated to do so. No
assurance can be given as to the liquidity of any trading market that may
develop for any of the securities.


<P align="left" style="font-size: 10pt">Agents, underwriters, dealers and remarketing firms may be customers of, engage
in transactions with, or perform services for, Bowater Incorporated and its
subsidiaries in the ordinary course of business or otherwise.



<P align="center" style="font-size: 10pt">-38-
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="118"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Legal Matters</B>

<P align="left" style="font-size: 10pt">Certain legal matters with respect to the securities have been passed upon for
us by Harry F. Geair, our late Vice President &#150; General Counsel and Secretary
and formerly a trustee of each of the trusts. As of August&nbsp;22, 2003, Mr.&nbsp;Geair
beneficially owned approximately 73,756 shares of Bowater Incorporated common
stock (including shares underlying currently exercisable stock options), stock
appreciation rights with respect to 27,600 shares of Bowater Incorporated
common stock and phantom stock units with respect to approximately 267 shares
of Bowater Incorporated common stock. Unless provided otherwise in the
applicable prospectus supplement, certain future legal matters with respect to
the securities will be passed upon for us by Wyche, Burgess, Freeman &#038; Parham,
P.A. Certain matters of Delaware law relating to the validity of the trust
preferred securities will be passed upon on behalf of the trusts by Richards,
Layton &#038; Finger, P.A., Wilmington, Delaware, special Delaware counsel to the
trusts.


<DIV align="left">
<A name="119"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Experts</B>

<P align="left" style="font-size: 10pt">The consolidated financial statements and schedule of Bowater Incorporated and
our subsidiaries as of December&nbsp;31, 2002 and 2001, and for each of the years in
the three-year period ended December&nbsp;31, 2002, have been incorporated by
reference herein in reliance upon the reports of KPMG LLP, independent
accountants, incorporated by reference herein, and upon the authority of that
firm as experts in accounting and auditing. The audit reports covering the
December&nbsp;31, 2002 consolidated financial statements contain an explanatory
paragraph that refers to Bowater&#146;s adoption of the provisions of Statement of
Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;142, &#147;Goodwill and Other Intangible
Assets,&#148; and SFAS No.&nbsp;144, &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets,&#148; effective January&nbsp;1, 2002.




<P align="center" style="font-size: 10pt">-39-
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<HR size="1" noshade color="#000000" style="margin-top: -10px">

<P align="center" style="font-size: 10pt"><B>$250,000,000</B>


<P align="center" style="font-size: 10pt"><IMG src="g87692g8769201.gif" alt="(BOWATER LOGO)">

<P align="center" style="font-size: 10pt; font-family: 'Helvetica'"><B>BOWATER INCORPORATED</B>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman',Times,serif"><B>Floating
Rate Senior Notes due 2010</B><BR>
&nbsp;<BR>

<P>

<HR size="1" noshade color="#000000" style="margin-top: -10px" width="12%">
</div>

<DIV style="font-family: 'Times New Roman',Times,serif; font-size: 10pt" align="center">

<B>PROSPECTUS SUPPLEMENT</B>

<P>
<HR size="1" noshade color="#000000" style="margin-top: -10px" width="12%">

<P>
<P align="center" style="font-size: 16pt;"><B>UBS Investment Bank<BR>
JPMorgan</B><BR>
&nbsp;<BR>

<P>
<HR size="1" noshade color="#000000" style="margin-top: -10px" width="12%">


<P align="center" style="font-size: 10pt"><B>Scotia Capital<BR>
Harris Nesbitt<BR>
Wachovia Securities<BR>
SunTrust Robinson Humphrey<BR>
Banc of America Securities LLC<BR>
TD Securities<BR>
BNY Capital Markets, Inc.<BR>
CIBC<BR>
Barclays Capital<BR><BR><BR>
March&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004</B>


<P align="left" style="font-size: 10pt"><B>You should rely only on
the information
contained in or incorporated by reference in this prospectus
supplement and the accompanying prospectus. We have not authorized
anyone to provide you with different information. We are not making
an offer of these securities in any state where the offer is not
permitted. You should not assume that the information contained in
this prospectus supplement or the accompanying prospectus is accurate
as of nay date other than the date on the front of this prospectus
supplement.</B>


<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">

<P align="center" style="font-size: 10pt">
</DIV>


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end

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</SUBMISSION>
